Because of Bank of America’s false promises, many Nevada consumers
continued to make mortgage payments they could not afford, running
through their savings, their retirement funds or their children’s education
funds. Additionally, due to Bank of America’s misleading assurances, consumers deferred short-sales and passed on other attempts to mitigate their
losses. And they waited anxiously, month after month, calling Bank of
America and submitting their paperwork again and again, not knowing
whether or when they would lose their homes. Whatever the consumers’
particular circumstances, they all suffered the stress and frustration of
being misled by Bank of America while trying to take responsible action to
modify their mortgages so they could continue to make their payments
and remain in their homes.
“We are holding Bank of America accountable for misleading and
deceiving consumers,” said Attorney General Masto. “Nevadans who were
trying desperately to save their homes were unable to get truthful information in order to make critical life decisions.”
Bank of America’s misconduct in misrepresenting its mortgage modification program was confirmed in interviews with consumers, former
employees and other third parties and through review of relevant documents. Former employees describe an environment in which Bank of
America failed to staff its modification functions with employees who had
the necessary training, skills and experience. According to employees, the
modification process was chaotic, understaffed and not oriented to customers. Employees were even reprimanded for spending too much time
with individual consumers.
“Consumers turn to their banking or lending institutions for answers
when faced with a life changing decision such as saving their home,” said
Attorney General Masto. “Bank of America’s callous disregard for providing timely, correct information to people in their time of need is truly
egregious.

NV
1

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LinkedIn.com (search National
Mortgage Professional Magazine)

Misleading consumers by promising to act upon requests for mortgage
modifications within a specific period of time;
Misleading consumers with false assurances that their homes would
not be foreclosed while their requests for modifications were pending,
but sending foreclosure notices, scheduling auction dates, and even
selling consumers’ homes while they waited for decisions;
Misrepresenting to consumers that they must be in default on their
mortgages to be eligible for modifications when, in fact, current borrowers are eligible for assistance;
Making false promises to consumers that their modifications would be
made permanent if they successfully completed trial modification periods, but then failing to convert these modifications;
Misleading consumers with inaccurate and deceptive reasons for denying their requests for modifications;
Falsely notifying consumers or credit reporting agencies that consumers are in default when they are not;
Misleading consumers with offers of modifications on one set of
terms, but then providing them with agreements on different sets of
terms, or misrepresenting that consumers have been approved for
modifications.

NationalMortgageProfessional.com

Twitter.com/ntlmortgagepro

Nevada Attorney General Catherine Cortez Masto has
announced that her office is filing a lawsuit against
Bank of America Corporation N.A., BAC Home Loans
Servicing LP, Recon Trust Company (Bank of America)
for engaging in deceptive trade practices against
Nevada homeowners.
The lawsuit, filed in the Eighth Judicial District of the
State of Nevada, was triggered by consumer complaints
and follows an extensive investigation into Bank of America’s alleged
deceptive practices involving its residential mortgage servicing, particularly its loan modification and foreclosure practices.
The complaint alleges that Bank of America is:

NV
2

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DECEMBER 2010

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Think Reverse!
Table of Contents
Part I:
The new pillar of retirement security
Part II:
Marketing reverse mortgages: It’s all about education
Part III:
Originating reverse mortgages
Part IV:
Enhancing freedom: The essence of reverse mortgages
Part V:
A new frontier in mortgage lending

“Atare Agbamu is one of only a handful of people in the reverse mortgage arena
who possesses a commanding understanding of the reverse mortgage industry.
As an originator, he has hands-on experience educating seniors and their advisors.
As author of the “Forward on Reverse” column in The Mortgage Press since 2002,
Atare Agbamu communicates nationally with the housing finance community,
bringing the unique insights and experience of an ardent reverse mortgage expert
into a wider business context.
“This book combines Atare’s keen insights and know-how with extensive research to create a first
of its kind resource for the reverse mortgage industry. It offers a comprehensive overview of the industry plus detailed information on marketing and originating reverse mortgages.
“Present and future reverse mortgage professionals and senior advisors will profit from
decades of experience skillfully woven into this book. If you plan to succeed in this industry, this
book is the place to start.”
—Sarah F. Hulbert, President, Senior Financial Corporation and former four-term Co-Chair of NRMLA’s Board
of Directors

“When I first began reviewing the contents of this book, I became quite jealous ... Atare Agbamu
has set down an impressive amount of information ... And he delivers it in an easy-to-read, simpleto-understand style that will make this book essential reading for all reverse mortgage
professionals.”
—from the Foreword by Jim Mahoney, Co-Founder and Former Chairman, Financial Freedom Senior Funding
Corporation, and former four-term Co-Chair of NRMLA’s Board of Directors

“The stories [Chapter 15: Profiles in Satisfaction] are the best vehicle to increase understanding and
acceptance of reverse mortgages among us laypeople. They are very compelling ...”
—Therese Cain, Executive Director, Minneapolis/St. Paul Chapter of Little Brothers—Friends of the Elderly

“This book should be required reading for all new loan consultants originating reverse mortgages and
is recommended for experienced ones as well. This book provides excellent insight and information
on preparing ahead to provide the service our seniors deserve, to ensure a smooth loan process and
shorten the time to closing. Most of the problems caused in the processing and closing of reverse
mortgages come from inadequate preparation.”
—Deanne Opstad, AVP, Senior Underwriter, Generation Mortgage Company

National Mortgage Professional Magazine

TABLE OF CONTENTS
RTGAGE PRO

SSIONAL

NATIONAL

NMP

FE

December 2010

MO

MAG

AZIN

Volume 2, Number 12

COMPANY

WEB SITE

PAGE

E

Special Focus on
“Building Relationships”
The Seven Keys to Building Successful Relationships
By Louis Tesoriero

ARTICLE SUBMISSIONS/PRESS RELEASES
To submit any material, including articles and press releases, please
contact Editor-in-Chief Eric C. Peck at (516) 409-5555, ext. 312 or e-mail
ericp@nmpmediacorp.com. The deadline for submissions is the first of
the month prior to the target issue.

As 2010 wraps up and we look forward to 2011, let us stop and take a minute to review the
past year. We have seen a lot of changes on the regulatory and legislative front that have
adversely impacted the industry (i.e. the impacts of LO compensation—see the bottom of
the page for some insights), yet we still stand. Kudos to you all. And as we segue into another year, this month we hope to provide you with some tool and ideas that could take your
business to the next level in our “Special Focus on Building Relationships.” We have assembled a group of authors who will share with you, their messages on how to grow your referral base and attract new clientele through simple everyday methods.
In our “get it done in under 140 characters world,” we sometimes lose sight of the simplicity involved in building up these relationships. This section starts off with a piece from Louis Tesoiero
revealing his “Seven Keys to Building Successful Relationships,” where he breaks down how to better construct
your relationships and how to apply them to the mortgage industry. This is followed by Jeff Mifsud guiding
you on how to build relationships through sharing your knowledge in his article “Build Relationships Through
FHA Updates.” Personally, I feel that the growth of some of my most valued relationships have been fostered
and nurtured by various forms of social media. Along those lines, you’ll want to check out John Seroka’s piece,
“Strengthen Relationships With Social Media.” The nice thing about having friends send you business is that
you help their contacts and you never have to pay for leads. Adam P. Smith discusses having systems in place
to develop those relationships to ensure that your clients are all handled like good friends in his piece, “What
Could be Better Than Zero-Cost Marketing.” Followed by that is an article from Laura Lynn Burke encouraging you to go outside of your comfort zone to build new relationships in “Relationship Speaking: The New
Secret Ingredient.” Our focus concludes with a contribution from Lance Cassell on the importance of industry designations to build relationships with borrowers on a firm foundation of authority in his piece, “Building
Borrower Relationships Through Industry Designations.”
Thank you all for a great year. As we enter our third year of publishing National Mortgage Professional
Magazine, we will be looking to build our relationship with you! I want to hear from you on how we can
continue to make our publication the choice read of the complete mortgage professional. You can always
e-mail me at andrew@nmpmediacorp.com or call (516) 409-5555, ext. 333 to provide feedback.
Sincerely,

Andrew T. Berman, Executive Vice President
NMP Media Corp.

New LinkedIn Group Created by David Lykken on
Loan Originator Compensation Changes & New Rules
NMP editorial contributor and mortgage banking consultant, David Lykken has started a heated conversation
about loan originator compensation. Here's just a sample of some of the posts by the group members.
“One common thread I see is that the majority, if not all, who support the delayed commission idea are from those
paid on salary. If you would pay the loan officers a higher split, you may get them to do the delayed comp program, but honestly, what is in it for the originator? Nothing I can see, and since mortgage company management
performance is less than stellar (based upon my 29 years of experience), I do not trust anyone with my money.”

SUBSCRIPTIONS
To receive subscription information, please call (516) 409-5555, ext.
301; e-mail orders@nmpmediacorp.com or visit www.nationalmortgageprofessional.com. Any subscription changes may be made to the
attention of “Circulation” via fax to (516) 409-4600.
Statements, articles and opinions in National Mortgage Professional Magazine
are the responsibility of the authors alone and do not imply the opinion or
endorsement of NMP Media Corp., or the officers or members of National
Association of Mortgage Brokers and its State Affiliates (NAMB), National
Association of Professional Mortgage Women (NAPMW), National Credit
Reporting Association (NCRA) and/or other state mortgage trade associations.
Participation in NAMB, NAPMW, NCRA, and/or other state mortgage
trade associations events, activities and/or publications is available on
a non-discriminatory basis and does not reflect the endorsement of the
product and/or services by NMP Media Corp., NAMB, NAPMW, NCRA,
and other state mortgage trade associations.
National Mortgage Professional Magazine, NAMB, NAPMW, NCRA,
and/or other state mortgage trade associations do not make any misrepresentations or warranties concerning the regulatory and/or compliance
aspects of advertisers, products or services and/or the editorial content contained in NMP Media Corp. publications. National Mortgage Professional
Magazine and NMP Media Corp. reserve the right to edit, reject and/or postpone the publication of any articles, information or data.
MO

“Has anyone thought about how they are going to compensate branch managers? In all of the readings and meetings
I have attended, I am hearing that branch managers who also produce loans themselves will either have to be
compensated one of two ways: Commission paid on loans they produce, or on profits of the branches, but they cannot
be compensated on both. In our group, a manager typically gets paid a small salary, override on branch production,
and profits splits. It is my understanding this will have to change, especially if they produce loans as well.”

—Robert W. Gerrard, CEO, One Mortgage LLC

“As a producing branch manager you will need to create a compensation plan for loan origination with
yourself. In other words, you will have a split that makes sense for your branch and just like the other loan
officers in your office, those terms need to remain intact, regardless of the profitability of the branch.”

The Federal Housing
Administration (FHA)
has released its annual report to Congress
on the financial status
of its Mutual Mortgage
Insurance (MMI) Fund, FHAâ&#x20AC;&#x2122;s principal
insurance account that includes all single-family and reverse mortgage activity. FHAâ&#x20AC;&#x2122;s study finds that since last year,
the capital reserve ratio held steady,
insurance claims declined significantly,
and the economic value of FHAâ&#x20AC;&#x2122;s singlefamily insurance program grew by more
than $1 billion, from $3.6 billion in
2009 to $4.7 billion in 2010.
Similar to last yearâ&#x20AC;&#x2122;s report to
Congress, this accounting shows that
FHA is sustaining significant losses from
loans insured prior to 2009 and its capital reserve ratio remains below the
congressionally-mandated threshold of
two percent of all insurance-in-force.
However, the report concludes that
under conservative assumptions of
future growth of home prices, and without any new policy actions, FHAâ&#x20AC;&#x2122;s capital ratio is expected to approach two
percent in 2014 and exceed the statutory requirement in 2015.
â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s clear that FHA is in a stronger
position today than we were just one
year ago,â&#x20AC;? said FHA Commissioner
David H. Stevens. â&#x20AC;&#x153;While we are not yet
completely out of the woods, based on
the evidence weâ&#x20AC;&#x2122;re seeing, FHA is
weathering the economic storm while
helping to create a firm foundation for
our nationâ&#x20AC;&#x2122;s recovery.â&#x20AC;?
FHAâ&#x20AC;&#x2122;s capital reserve ratio measures
reserves in excess of those needed to
cover projected losses over the next 30
years. The independent actuarial
reviews of the MMI Fund estimate FHAâ&#x20AC;&#x2122;s
capital reserve ratio to be 0.50 percent
of total insurance-in-force this year,
falling fractionally from 0.53 percent in
2009. The difference is primarily attributed to the use of much more conservative assumptions regarding future
house price growth than were used last
year, which also resulted in an $8.5 billion decrease in economic value.
However, that decrease was offset by a
variety of factors, including an $8.7 billion increase in value due to better
credit quality, loan performance, and

the premium increase implemented
earlier this year.
Due in large part to the performance
of recently originated loans, FHAâ&#x20AC;&#x2122;s total
capital resources increased by $1.5 billion since last year, to $33.3 billion, and
are at their highest level everâ&#x20AC;&#x201D;$5.5 billion greater than predicted last year. If
the economy were to suffer a further
significant downturn, recovery of the
capital ratio could be delayed beyond
the projected timeframe. However,
even in the actuariesâ&#x20AC;&#x2122; worst-case stress
test scenario, FHAâ&#x20AC;&#x2122;s capital resources
remain sufficient to cover projected
claim losses and FHA would not require
a taxpayer subsidy, an improvement
over last yearâ&#x20AC;&#x2122;s assessment and due to
new loans having higher credit quality
than had been anticipated.
Due in large part to the performance
of recently originated loans, FHAâ&#x20AC;&#x2122;s total
capital resources increased by $1.5 billion since last year, to $33.3 billion, and
are at their highest level everâ&#x20AC;&#x201D;$5.5 billion greater than predicted last year. If
the economy were to suffer a further
significant downturn, recovery of the
capital ratio could be delayed beyond
the projected timeframe. However,
even in the actuariesâ&#x20AC;&#x2122; worst-case stress
test scenario, FHAâ&#x20AC;&#x2122;s capital resources
remain sufficient to cover projected
claim losses and FHA would not require
a taxpayer subsidy, an improvement
over last yearâ&#x20AC;&#x2122;s assessment and due to
new loans having higher credit quality
than had been anticipated.
Loans insured before 2009 are
responsible for 70 percent of the expected single family loan losses. Though they
are now prohibited, so-called â&#x20AC;&#x153;sellerfinanced down payment assistance
loansâ&#x20AC;? produced $6.6 billion in claims
to-date and may ultimately cost FHA
$13.6 billion. Without these sellerfinanced loans, FHAâ&#x20AC;&#x2122;s capital ratio would
be above the congressionally mandated
two percent threshold. Conversely, loans
insured since 2009 earned $4.8 billion in
economic value to the MMI Fund and are
estimated to generate $28.3 billion in
economic value by 2016. Expected economic value of FY 2010 and FY 2011
loans alone are estimated to reach $11
billion.
Insurance claim expenses in FY 2010
were 21 percent lower than predicted
continued on page 6

last year. Even before last yearâ&#x20AC;&#x2122;s actuarial study, FHA management began
instituting sweeping reforms to
strengthen the MMI Fund. These policies have improved loan quality,
strengthened lender enforcement, and
helped to protect future performance.
As a result, the FY 2010 and future
books-of-business are expected to generate significant amounts of net capital
resources that will help pay losses on
earlier books and rebuild the capital
position of the MMI Fund.
In addition, FHA eliminated
approval for loan correspondents and
increased net worth requirements for
lenders. FHA introduced a new premium structure that is more in line with
private mortgage insurersâ&#x20AC;&#x2122; pricing, and
is estimated to provide approximately
$300 million per month of additional
capital to the MMI Fund. Furthermore,
FHA has changed its credit score and
down payment requirements to ensure
that FHA provides access to borrowers
who have historically performed well.
Specifically, a minimum downpayment
of 10 percent is now required of borrowers with credit scores below 580
and applicants with credit scores below
500 are no longer eligible for FHA
insurance.
For more information, visit www.hud.gov.

The Conference of State
Bank Supervisors (CSBS),
which operates the
Nationwide Mortgage
Licensing System and
Registry (NMLS) on
behalf of state mortgage regulators, has
announced unique state test components
are now available for all 50 states and two
territoriesâ&#x20AC;&#x201D;the District of Columbia and
the Virgin Islands. The Secure and Fair
Enforcement for Mortgage Licensing Act of
2008 (SAFE Act) requires mortgage loan
originators to pass a written qualified test
to become licensed through NMLS. The
SAFE Mortgage Loan Originator Test, which
has been developed by NMLS, consists of
two components: a National Component
and a Unique State Component. Mortgage
loan originators must take and pass the
National Component and a Unique State
Component for each state in which they
are seeking a license.
â&#x20AC;&#x153;This announcement marks the successful completion of another requirement assigned to NMLS by the SAFE
Act,â&#x20AC;? said Bill Matthews, CSBS senior
vice president and president of the
State Regulatory Registry, the whollyowned subsidiary of CSBS that operates
NMLS on behalf of state mortgage regulators. â&#x20AC;&#x153;This is one more illustration
of how state regulators are committed
to providing enhanced and efficient
supervision of the regulatory mortgage
industry by their full commitment to

implement the many provisions of the
SAFE Act.â&#x20AC;?
The National Test Component and
the first 11 Unique State Test
Components were launched by NMLS
on July 30, 2009. Since that date, NMLS
has administered over 332,000 tests
across the nation. For more information on how to enroll for the SAFE
Mortgage Loan Originator Test, please
visit the Testing Page of the NMLS
Resource Center.
For more information, visit www.csbs.org.

Freddie Mac finds fixed-rate
is the predominant choice
for refis
Freddie Mac has
announced the
results of its
quarterly Product Transition Report that
concludes in the third quarter of 2010,
refinancing borrowers overwhelmingly
chose fixed-rate loans, regardless of
whether their original loan was an
adjustable-rate mortgage (ARM) or a
fixed-rate. While 30-year fixed-rate
mortgages are still the most preferred
product chosen for the new loan
among borrowers who previously had
that product or an ARM, borrowers who
previously held shorter-term fixed-rate
mortgages showed a stronger preference for staying with a 15-year or 20year fixed-rate loan than they have in
recent quarters. Overall, fixed-rate
loans accounted for more than 95 percent of refinance loans.
â&#x20AC;&#x153;Fixed mortgage rates fell throughout the third quarter in Freddie Macâ&#x20AC;&#x2122;s
Primary Mortgage Market Survey, with
30-year fixed rates dropping to levels
we hadnâ&#x20AC;&#x2122;t seen since the early 1950s,â&#x20AC;?
said Frank Nothaft, Freddie Mac vice
president and chief economist. â&#x20AC;&#x153;We
ended the second quarter excited that
borrowers could lock in a rate of 4.75
percent for 30 years, and we ended the
third quarter with rates at just a touch
over 4.25 percent. Itâ&#x20AC;&#x2122;s no wonder borrowers are attracted to fixed-rate
loans.â&#x20AC;?
These estimates come from a sample
of properties on which Freddie Mac has
funded at least two successive loans
and the latest loan is for refinance
rather than for home purchase. Some
loan products, such as one-year ARMs
and balloons, are based on a small
number of transactions. Year-to-date
through September, the ARM share of
applications was six percent in Freddie
Macâ&#x20AC;&#x2122;s monthly ARM survey, which
includes purchase-money as well as
refinance applications.
â&#x20AC;&#x153;The share of borrowers shortening
their amortization terms remains
high,â&#x20AC;? said Nothaft. â&#x20AC;&#x153;There is always a
discount for shorter terms but the payments are often about 50 percent higher than a 30-year amortizing payment
and thus are unaffordable to many
homeowners. What weâ&#x20AC;&#x2122;re seeing now is

that the level of the 15-year payment is
becoming more affordable to more
borrowers.”
For more information, visit www.freddiemac.com.

nel,” said Lo. “Online lenders such as
Quicken Loans do a very good job of
keeping their customers informed of the
process every step of the way by providing periodic status updates and information pertaining to their loan.”
For more information, visit www.quickenloans.com or www.jdpower.com.

MBA requests more
resources for FHA and the
authority to strengthen
the program
According to a report from
the Mortgage Bankers
Association (MBA), Federal
Housing Administration
(FHA) Commissioner David
H. Stevens should be granted the resources

REMN

to better manage the agency through the
current housing market crisis and to allow
the agency to continue to thrive when the
market recovers. Increasing resources for
staffing and technology are among the 12
recommendations to improve the FHA
and the Government National Mortgage
Association (Ginnie Mae) by the MBA’s
Council on the Future of FHA and Ginnie
Mae. Convened in November 2009, the
Council consists of senior executives from
27 companies, representing both large
national lenders and small independent
mortgage bankers.
“FHA and Ginnie Mae are cornerstones of the U.S. housing market as they
provide access to mortgage loans for milcontinued on page 9

WHOLESALE

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are guaranteed. We promise extraordinary
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Learn more at www.remnwholesale.com

Real Estate Mortgage Network, Inc. is located at 499 Thornall Street, Second Floor, Edison, NJ 08837. NMLS #6521. This information is for use by mortgage professionals only and should not be distributed to or used by consumers or third
parties. Information is accurate as of date of printing and is subject to change without notice.

DECEMBER 2010

* Same-day decisions guaranteed if file is received by 11 a.m. EST.

NEVADA MORTGAGE PROFESSIONAL MAGAZINE

We’re not
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NationalMortgageProfessional.com

Driven by an
increase in length
of time from application to approval,
the average timeline of the mortgage origination process has increased for a third
consecutive year, while customer satisfaction has declined, according to the
J.D. Power and Associates 2010 U.S.
Primary Mortgage Origination Satisfaction
Study. The study, based on the voice of the
customer, measures customer satisfaction
in four key factors of the mortgage origination experience: The application and
approval process, satisfaction of the loan
officer and/or mortgage broker, the closing experience and contact.
Quicken Loans ranks highest among
primary mortgage lenders with a score
of 826, and performs well in all four
factors. MetLife Home Loans (808) and
PNC/National City Mortgage (776) follow Quicken Loans in the rankings.
The 2010 U.S. Primary Mortgage
Origination Satisfaction Study is based
on responses from 3,401 consumers
who originated new mortgages. The
study was fielded between July and
August 2010.
The study finds that the time from
application to approval has increased
to 27.5 days in 2010 from 20 days in
2009. As a result, the time frame for the
entire origination process has increased
to 52.1 days in 2010 from 46.9 days in
2009. Consequently, overall satisfaction
has decreased to 734 (on a 1,000-point
scale) in 2010 from 739 in 2009.
“While the revised Real Estate
Settlement Procedures Act (RESPA)
guidelines appear to have streamlined
and shortened the time from approval
to closing, the unintended consequence is that the application to
approval time frame has lengthened
and become more complicated,” said
David Lo, director of financial services
at J.D. Power and Associates.
“Ultimately, this longer timeline has a
negative impact on overall satisfaction,
although there are specific best practices that may mitigate the negative
perceptions.”
The study finds that the most important best practices, which are most
closely associated with high levels of
satisfaction, are:
Providing proactive updates on the
status of the loan
Providing a welcome acknowledgment after an application is submitted
Avoiding asking for the same information more than once
Closing on the promised date
Clearly explaining loan options and
ensuring that the customer understands

Clearly explaining the entire process
from application to approval
The study also finds that usage of the
online application channel continues to
increase. Nearly 20 percent of customers now go online to start the mortgage application process, up from 14
percent in 2009. In comparison, only 29
percent of customers start the mortgage
application process in person, while 33
percent did so in 2009. In addition,
fewer customers this year say that they
met with their loan officer or mortgage
broker in person during the mortgage
origination process—50 percent, compared with 57 percent in 2009.
“Customer preference and, more
importantly, perceptions, continue to
increase with the online direct chan-

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lions of first-time, and low- and moderate-income homebuyers,” said MBA
Immediate Past Chairman Robert E. Story
Jr., CMB. “MBA members support both of
these institutions. MBA has long advocated for changes that will help guarantee a
strong FHA and Ginnie Mae.”
For FHA, the report recommends
that:
Congress give FHA and Ginnie Mae
appropriations to hire and train
new staff.
Congress provide FHA with appropriations to develop and implement
modern information technology (IT)
systems and processes, including
anti-fraud tools. FHA should also
refine its TOTAL Scorecard.
FHA’s mission be updated and redefined, including a re-examination of
the current FHA loan limits.
FHA strengthen its reverse mortgage
product (Home Equity Conversion
Mortgage (HECM)).
Congress provide FHA with the expanded authority to increase premiums.
Congress give the FHA Commissioner
the authority, with the concurrence of
the HUD Secretary, General Counsel
and Ginnie Mae president, to temporarily suspend problem lenders.
FHA balance its proposed multifamily risk management protocol against
the backdrop of rising affordable

housing needs, declining incomes
and the ongoing credit crisis.
FHA should examine the existing
Homeownership Center and Hub
structure.
The paper also recommends that
Ginnie Mae:
Examine appropriate staff levels.
Maintain its exemption from the
Credit Reform Act of 1990.
Modify its policy regarding advance
funding facilities.
Clarify its Home Equity Conversion
Mortgage MBS issuer criteria.
The paper, “The Future of the
Federal Housing Administration (FHA)
and the Government National Mortgage
Association (Ginnie Mae),” also offers
observations on the recent past and
future of FHA (including the Home
Equity Conversion Mortgage [HECM]
and multifamily programs), and Ginnie
Mae products and programs.
For more information, visit www.mortgagebankers.org.

and non-profit counselors released its
September 2010 survey data, which
estimates the industry completed close
to 150,000 permanent loan modifications for the month. The reported data
for September shows that mortgage
servicers completed approximately
120,000 proprietary loan modifications
for homeowners and 27,840 Home
Affordable Modification Program
(HAMP) modifications (as reported by
U.S. Department of the Treasury), for
an estimated total of 147,000.
The total number of loan modifications with principal and interest payment reductions declined slightly for
the month of September (93,000 compared to 105,000 in August), but 78
percent of the total proprietary modifications completed in September provide a reduced monthly payment for
homeowners.
HOPE NOW is currently reporting
additional metrics on types of proprietary modifications being offered to
distressed homeowners in order to better assess sustainability.
Since June 2010, HOPE Now estimates that loan modifications that provide homeowners with reduced principal and interest payments of 10 percent or more have accounted for 53
percent (255,000) of proprietary loan
modifications in 2010.
Additionally, it is estimated that
loan modifications with a fixed rate
period of five or more years account for
80 percent (381,000) of all proprietary
modifications done this year by mort-

gage servicers. This is significant when
assessing the affordability and viability
of loan modifications currently being
provided by the mortgage industry.
According to these latest estimates,
mortgage servicers have completed 1.4
million loan modifications in 2010.
“The most important take away from
HOPE NOW’s September data is that we
now have good metrics on the sustainability of proprietary loan modifications being done by our servicer members,” said Faith Schwartz, senior adviser for HOPE NOW. “While HAMP has
provided a road map for other solutions, and is still the first line of defense
for a delinquent homeowner, if the
borrower is not eligible for a HAMP
modification, a proprietary modification is able to fill the gap and offer a
viable and sustainable solution to avoid
foreclosure, enabling the borrower to
stay in their home.”
For
more
information,
visit
www.hopenow.com.

Hawaii becomes the final
state to join the NMLS
Less than 34 months
after its official launch,
all 50 states have
joined the Nationwide
Mortgage Licensing
System and Registry (NMLS). Hawaii
became the last state to join the NMLS,
thereby ensuring improved supervision
of non-depository mortgage lenders, brocontinued on page 10

Originating and closing loans these days can be very challenging. Lengthy
turn times, inexperienced underwriters, and high costs can contribute to
fewer closed loans.

GSF Wholesale is the safe and secure place for all of your business.
Our experienced staff is dedicated to ensuring your loans are protected.
With seasoned underwriters, efﬁcient quality control department and
competitive pricing, GSF Wholesale is focused on you and your business
every day to meet the challenges of the new lending environment.

NationalMortgageProfessional.com

GSF Wholesale The Safe Place for
your business!

9

news flash

continued from page 9

kers, and mortgage loan originators maintaining licensure through a single system
shared by all state mortgage regulators.
“NMLS was built to be the foundation
of a coordinated and transparent system
of mortgage supervision implemented by
state regulators,” said Neil Milner, CSBS
president and chief executive officer.
“Having all 50 states on the System provides greater transparency within the
mortgage industry and makes information
available to consumers as they obtain
mortgages from state-licensed entities.”
“This milestone is a testament to the
hard work and commitment of state mort-

gage regulators,” said Gavin Gee, Director of
the Idaho Department of Finance and
Chairman of the State Regulatory Registry
LLC (SRR). A limited liability company established by CSBS and the American
Association of Residential Mortgage
Regulators (AARMR), SRR operates NMLS on
behalf of state regulators. “State regulators
have demonstrated their ability to coordinate on an unprecedented level to
enhance supervision of the residential
mortgage industry and protect consumers.”
Launched in January 2008 with seven
states (Idaho, Iowa, Kentucky, Maine,
Nebraska, New York and Rhode Island),

NMLS now includes 58 state agencies
from all 50 states, the District of
Columbia, and the territories of Puerto
Rico and the U.S. Virgin Islands. NMLS
currently tracks nearly 16,000 mortgage
companies holding over 30,000 licenses
and over 126,000 mortgage loan originators holding over 207,000 licenses.
For more information, visit www.mortgage.nationwidelicensingsystem.org.

TransUnion study finds
mortgage delinquency
“roll rates” peaked in
summer of 2009
The number of
consumers “rolling”
their delinquency
status on mortgage payments from 30- to

60 and 60- to 90 days past due peaked in
July 2009, according to a new study from
TransUnion. Approximately 24.4 percent
of consumers who were 30 days past due
on their mortgage payments in June 2009
became 60 days past due in July 2009, and
nearly 37.6 percent of consumers 60 days
delinquent on their mortgage payments
became 90 days late in that same time.
“Consumers who are past due on
their mortgages are always susceptible
to going into more severe stages of
delinquency. We found that this vulnerability was exacerbated during the recession as housing prices declined and
unemployment increased,” said FJ
Guarrera, vice president in TransUnion’s
financial services business unit and one
of the authors of the study.
“Coincidentally, we noted that roll rates
observed in the study reached their apex
one month after the end of the recession
as officially determined by the National
Bureau of Economic Research. This timing is a clear illustration of how credit
dynamics can lag economic dynamics:
although we may have left the worst of
the recession behind as we entered
recovery economically, from a credit
perspective we were just hitting the
toughest period for consumer default.”
One of the interesting insights
gained from the TransUnion study was
the relationship between consumers
with home equity loans or lines of credit and increased mortgage delinquency
through the recession. The study indicated that, under certain circumstances,
the presence of one of these loans may
contribute to higher roll rates during
trying economic times. In March 2006,
the national 30-60 mortgage roll rate
was 12.56 percent for borrowers with
home equity loans/lines and 17.16 percent for those without. However, by
March 2009 the 30-60 roll rate had skyrocketed to 26.55 percent for borrowers
with home equity loans/lines, while
increasing to only 22.66 percent for
those borrowers without.
Not surprisingly, the effect of home
equity loans or lines of credit on roll
rates was more pronounced in states
with the most severe recessionary
effects. In California during that same
time period, 30-60 mortgage roll rates
for borrowers with home equity loans
jumped from 12.99 percent to 39.42
percent. California borrowers without
home equity loans/lines experienced a
smaller increase from 17.00 percent to
32.24 percent.
“This is yet another example of the
dynamic nature of the lending markets,
and how consumers react to different
economic, financial and social forces.
The presence of a home equity line
used to be an indicator that a consumer
had ‘deeper pockets,’ i.e. more equity
and greater financial resources. Now it
has become a red flag for higher risk
due to over-leveraging,” Guarrera said.
The study confirmed previous findings that mortgage delinquency roll
rates were correlated to falling housing
prices and rising unemployment over
continued on page 12

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DECEMBER 2010

news flash

continued from page 10

the course of the recession. Median existing home prices decreased 18.1 percent
(from $207,700 to $170,200) from
12/2007 through 06/2009, while 30-60
and 60-90 mortgage roll rates increased
42.4 percent and 29.6 percent, respectively. The national 30-60 mortgage roll rate
had been 17.12 percent in December
2007 and moved up to 24.38 percent by
June 2009. The 60-90 mortgage roll rate
increased from 29.00 percent to 37.59
percent in that same timeframe.
For more information, visit www.transunion.com/business.
By Charlie W. Elliott Jr., MAI, SRA, ASA

The Field Appraisal Review
is the Trump Card
This is the third of three columns that I
am writing to bring attention to and
extol the virtues of the three most commonly used appraisal review reports as
quality control tools. These tools are:

DECEMBER 2010

NEVADA MORTGAGE PROFESSIONAL MAGAZINE

NationalMortgageProfessional.com

12

While the Field Review will typically be
reported on a standard review form, it
is much more like preparing a completely new appraisal. The reviewer not
only has seen the subject property, usually from the curb, but he or she most
The Electronic Appraisal Review;
likely has inspected the comparable sales
The Desk Review; and
used in the appraisal, as well as other
The Field Review.
competing comparable sales. He is more
likely to have in-depth knowledge of the
They are listed in the
subject neighborhood, as
order of the least comwell as a feel for the overprehensive to the most
all market in which the
comprehensive, and the
subject is located.
column is designed to
The Field Review, like
assist the reader in makthe Desk Review, is coving the proper decision
ered in Uniform Standards
as to which review tool is
of Professional Practice
best for a given situation.
(USPAP) and the reviewer
Of all of the appraisal
is required to meet certain
review products available
standards. Under USPAP,
to the lender, the Field
when the reviewer proReview is the trump card.
vides a reviewer value
“… where there is
It is the method of
opinion he or she must
reviewing an appraisal
reason to question the state and/or identify the
that will typically yield
client, the users, the purappraisal from the
the most accurate and
pose of the review, the
onset, a Field Review
credible analysis of the may be ordered upfront work under review, the
appraisal that is under
date of the work under
to save time and
review. It consumes
review, the effective date
money and to get a
more resources than
of the opinions and coneither of its less-compre- comprehensive review.” clusions, the name of the
hensive cousins, because
appraiser performing the
it is more time-consuming, requires appraisal, the effective date of the
more research, requires travel, includes appraisal review, all extraordinary
a property inspection of the subject assumptions and hypothetical condiproperty at a minimum, and in many tions and how these assumptions and
cases, requires an inspection of the conditions affect the results, scope of
comparable sales used in the analysis. the work, reviewer opinions and concluTherefore, it costs more. The appraiser, sions. The appraiser must also include a
through this additional effort, has signed certification, state the reviewer’s
much more information from which to opinion of value, state information,
base his or her opinion and to render analysis and opinions accepted as credthe most creditable results.
itable, and summarize any additional
The Field Review, unlike some of the information relied upon in the reviewother reports, will typically provide a ers value opinion.
review appraiser’s opinion, which
Even though it is the granddaddy of
agrees with that of the original apprais- the Appraisal Reviews, the Field Review
er or offers a dissenting opinion, com- does have its shortcomings. First, it
plete with additional comparable sales
continued on page 16
and a different final opinion of value.

Report finds sharp spike
in mortgages 90-plus
days delinquent
The Center for Housing
Policy, the Local Initiatives
Support Corporation (LISC)
and the Urban Institute
have compiled and released the first
data on seriously delinquent mortgages
for all 366 U.S. metro areas. “Seriously
delinquent” mortgages are those that
are delinquent 90 days or more or are in
the foreclosure process. An analysis of
these data for the nation’s 100 largest
metropolitan areas reveals a 32 percent
increase over a one-year period in the
share of mortgages that are seriously
delinquent. In March 2010, more than
one in 10 mortgages (10.2 percent) in the
100 largest metropolitan areas was seriously delinquent— up from one in 13
mortgages (7.7 percent) in March 2009.
“These new delinquency data confirm
that the number of foreclosures is likely to
continue to rise,” said Jeffrey Lubell, executive director of the Center for Housing
Policy, the research affiliate of the
National Housing Conference. “By providing the first available information on foreclosure and delinquency rates for all 366
U.S. metropolitan areas, the ForeclosureResponse.org team hopes to raise awareness of the continuing challenge of mortgage foreclosures and encourage policymakers and practitioners to use both
time-tested and innovative solutions to
help address this challenge.” The study
ranks metropolitan areas by foreclosure
and delinquency rates.
The severity and the trajectory of the
problem vary dramatically across the
nation. Among the 100 largest metropolitan areas, the Austin metro area had the
lowest share of seriously delinquent mortgages in March 2010 (4.4 percent) while, at
the other extreme, 26 percent of mortgages in the Miami metro area were seriously delinquent. Over the preceding year,
the share of mortgages that were seriously delinquent in the Austin metro area
increased by just 1.3 percentage points, as
compared to an increase of 6.6 percentage
points in the Miami metro area.
“The most rapid increases in mortgage delinquency occurred in metro
areas where home prices are much
higher than local incomes can afford,”
said Tom Kingsley, senior fellow at the

Urban Institute. “The other factors
associated with rising delinquencies
were declining employment, plunging
home prices and higher densities of
sub-prime lending in the peak period
from 2004 to 2006.”
According to a background paper prepared by Kingsley and Chris Walker of LISC,
when the foreclosure crisis began, metro
areas in California were the hardest hit,
with Florida, Arizona and Nevada close
behind. Now, five of the six metro areas
with the highest serious delinquency rates
are in Florida (Miami, Orlando, Lakeland,
Tampa and Bradenton). On average, more
than one in five mortgages was seriously
delinquent (21.2 percent) in these five
Florida metro areas in March 2010, up five
percentage points from the previous year.
The top five California metro areas
(Riverside, Stockton, Modesto, Bakersfield
and Fresno) have an average delinquency
rate of 16.6 percent, but their rate of
increase has slowed considerably, up only
2.3 points over the year. The paper focuses
on serious delinquencies in the 100 largest
metropolitan areas.
Among the 100 largest metro areas,
eight of the 10 metro areas with the
lowest rates of serious delinquency in
March 2010 were in the nation’s midsection—Austin, Madison, Omaha, Des
Moines, San Antonio, Colorado Springs,
Wichita and Tulsa; the other two were
Raleigh and Lancaster. Rates for these
10 ranged from 4.4 to 6.5 percent and
annual increases were also much
smaller, ranging from 1.3 to 1.9 points.
“It is worth noting that even these levels are seriously problematic when considered in relation to decades of much lower
delinquency rates prior to the start of the
mortgage crisis in 2007,” said Kingsley.
“The data show the full extent of the
foreclosure problem in metro areas nationwide,” said Chris Walker, research director
of LISC, which calculated the information
made public on the ForeclosureResponse.org Web site. “This study ranks
metropolitan areas by the overall rate of
seriously delinquent mortgages, providing
a better indicator of housing market stress
since it looks at the full extent of the problem rather than just the number of foreclosures entering the pipeline,” said Walker.
For more information, visit www.foreclosure-response.org.

Your turn
National Mortgage Professional Magazine
invites you to submit any information on
regulatory changes, legislative updates,
human interest stories or any other
newsworthy items pertaining to the
mortgage industry to the attention of:

NMP News Flash column
Phone #: (516) 409-5555
E-mail: newsroom@nmpmediacorp.com
Note: Submissions sent via e-mail are preferred. The deadline for submissions is the
1st of the month prior to the target issue.

Plan for the Year Ahead
It has never been more important for
originators to plan for an upcoming year
as we approach 2011. That is why the
focus of this month’s edition of National
Mortgage Professional Magazine is of
utmost importance as we look at building relationships. We have been subjected to more changes in the past three
years than the industry has seen in the
previous two decades, and no part of the
industry has been untouched:

Program changes;
The tightening of credit;
Record low rates;
Falling home prices;
Changes in laws and regulations;
The demise of the sub-prime industry;
The rebirth of the Federal Housing
Administration (FHA);
The government takeover of Fannie
Mae and Freddie Mac;
Skyrocketing foreclosures; and
A documentation crisis …

So, what does it take to plan ahead
in such a variable environment? I hope
reading through this edition of National
Mortgage Professional Magazine will
provide you with some ideas; however,
I would like to offer my own perspective
on this … planning should be a systematic process. This process should lead to
definitive actions that will help us meet
our objectives. In other words, we don’t
plan for the sake of planning. We plan
in order to change our actions.
We should start by outlining our
short-term, intermediate-term and
long-term objectives:

continued on page 16

The intent of Congress in passing the SAFE Act was to lay a new foundation for
our industry that protects consumers, stabilizes the credit markets and provides for better oversight.
1) Consumer Safety is primary. The SAFE Act requires MLOs to act in the best interest of the borrower and provides consumers free access to the employment
status and disciplinary actions against an originator.

13

2) Capital Safety is the objective. By requiring minimum competency standards
and forcing responsible lending practices into the non-bank lending channel,
we will again demonstrate to the capital markets our ability to produce investment grade product.
3) Accountability and Oversight is the methodology. The Nationwide Mortgage
Licensing System & Registry (NMLS&R) database provides for uniform reporting,
improves the flow of information amongst regulators and tracks MLO activity
across state lines.
It’s our industry that was at the epicenter of the nation’s financial crisis. It
is our responsibility to restore the lost confidence and credibility. The SAFE Act
has elevated the playing field. It will be up to us to play by the rules. Competency, responsible lending and accountability comprise the new stadium where
we will compete.

Profit
Profit is good. Profit builds the roads, the schools and it secures our family and
measures our value. Profit inspires excellence, improves service and motivates us
to be our best. The free market is brutally honest. Every day you compete for
your share, and each month, your profits validate your work. Profit is good.
On the new professional field, a higher level of competition has been set.
The good news is that you’ll no longer be playing against shortsighted opportunists with no commitment to professionalism. Those days are gone forever.
It’s a better time; you’ll look back five years from now and see that we’ve built
a safer place for borrowers to come to you.

Prosperity
As you close the books on this year, as you draw your friends and family near,
celebrate all the good things you have done. To you and yours, I wish good
health, peace and prosperity in the New Year.

Paul Donohue, CRMS is a 23-year industry professional and founder of Abacus Mortgage
Training and Education. Paul served on two NMLS working groups, establishing the new
national education protocols. Go to AbacusMortgageTraining.com to find out more
about your obligations for testing, education and licensure, or call (888) 341-7767.

DECEMBER 2010

Long-term objectives tell us where
we are heading. What do you want
to accomplish in your career and
beyond?
Intermediate-term objectives. What
can you do in order to meet your
goals in the next year that will help
you move towards your loan-term
objectives? It is here that we decide
what we would like our income to
be next year, as well as a host of
other factors.
Short-term objectives include our
everyday actions that will help us
achieve what we want to accomplish

A SAFE Foundation

NEVADA MORTGAGE PROFESSIONAL MAGAZINE

Sales training will tell you that you
should not be selling “rates.”
I agree with the point that we should

You will be called upon to have a discernable pricing policy within the
new compensation regulations.
This policy must be adhered to, regardless of the changes in the secondary
markets. This will be a challenge for
many loan officers, especially if the
markets continue to be volatile.

We are standing on a new playing field, two years from the credit crisis of 2008 and
the SAFE Act. The old stadium has been replaced. We are charging out of new locker
rooms, with new rules, brighter lines and tougher officiating. It’s a whole new game.
A new league of mortgage professionals is emerging across the industry.
In the wake of the unprecedented financial crisis, it is reasonable to expect
a period of unprecedented reaction. We are in a time of legislative mania. Regulatory activism and economic realities are driving a top to bottom reformation of the mortgage industry.
The old safety and soundness lending principles that were once solely the domain
of the depository institutions are being pushed down into the non-bank channel,
right onto the shoulders of the licensed loan originator. Mortgage loan originator
(MLO) licensure is meant to create a family friendly environment where consumers
and investors alike can come to a SAFE place to enter a mortgage contract.

NationalMortgageProfessional.com

Need I continue?
So, how could next year become even
more interesting? Those who have survived
the carnage of the past few years could face
a whole new series of challenges. For one,
we have compensation requirements
changing effective April 1 of next year.
Secondly, we all know that these record
low rates will not last forever. At some
point, we must convert to a more balanced
industry comprised of purchases and refinances. Finally, financial services legislation will bring another level of regulation
beyond the focus upon compensation.
Many of your competitors have left
the industry. However, new competitors
will appear just as quickly, especially as
the purchase market recovers. Though
the broker industry has been decimated
as far as numbers are concerned, don’t
count this segment out. As banks have
left the wholesale business, there will be
many players waiting to take their place.
So … where do we go from here?
This column, though secondary-based,
is not about predicting the future. Yet,
there is no doubt that the secondary
markets will play an important part in
the near-term future.

be focusing upon value and differentiating ourselves from those who are selling rates. On the other hand, keep in
mind the direction of rates will determine what direction the markets will
take next year. If rates stay low, refinances will continue. If rates begin
creeping up, this could indicate that the
purchase market is awakening. Either
way, there will be an opportunity.
However, you will have to implement a
marketing plan that can take advantage
of either scenario. It is too late to make
changes in your plan after the turn has
occurred.

Coming to a SAFE Place

For more information on the National Association of Mortgage Brokers, visit www.namb.org.

Scenes From NAMB/WEST 2010
December 4-6, 2010 at the MGM Grand in Las Vegas

14

DECEMBER 2010

NEVADA MORTGAGE PROFESSIONAL MAGAZINE

NationalMortgageProfessional.com

New NAMB President Mike D’Alonzo
receives the NAMB Presidential Pin
from Past President Jim Pair during
NAMB/WEST 2010

April Slizewski and Greg Tracy of
BlueRoof360 were on hand in Las Vegas to
discuss their Web site offerings
Greg Frost delivers
his session on the
“Principles of
Ethical Influence” to
a packed house

John Myler, Raymond Bartreau and
Cody Bennett from Best Rate Referrals
pause for a photo on the exhibit hall
floor of the MGM Grand

Attendees take part in the “Speed Dating:
Mortgage Style” session matching mortgage
professionals with a wide variety of vendors
in a “speed dating” environment
Cindy Broaddus, Terri Duncan, Eric Weisbrod,
Joe Spangenberg and Diana Bryson-Dikes from
Paramount Residential Mortgage Group Inc.
(PRMG) were on hand to explain their product
offerings

NAMB Vice President
Donald J. Frommeyer
discusses NAMB’s
accomplishments over
the past year

Mike Gulitz from MortgagePlannerCRM
shares his business management
strategies during the session, “DARTS:
Five Strategies to Get a Zero Inbox”

Steve Richman from Genworth
Mortgage Insurance discusses
diversifying your approach to
marketing in his discussion, “The
Market Has Changed and the
Borrowers Have Changed … Have
You?”

Denise Leonard sits in on the NAMB
Government Affairs Panel
Discussion in Las Vegas

Greg Tracy of BlueRoof360 discusses Web site
development with NAMB Treasurer John
Councilman during the “Speed Dating:
Mortgage Style” session

NationalMortgageProfessional.com

Orawin Velz from
Fannie Mae presents her
economic outlook for
2011 during her session,
“Are We Out of the
Woods Yet?”

value nation

costs much more than the other review
products available to the lender. While
Electronic Reviews may cost less than
$50 each and Desk Reviews are normally priced between $100-$200, a recent
survey indicated that the Field Review
costs about the same as an appraisal
and, if things get complicated, it can
cost more. The estimated cost of a Field
Review, for most properties in most
localities, ranges from $300-$400. The
Field Review also takes more time than
most competing appraisal review tools.
While Electronic Reviews are available
at warp speed or usually in less than 30
min. and Desk Reviews can be performed usually within one day, Field
Reviews, like appraisals, can take four
or five days to complete, sometimes
more. One last drawback to the Field
Review is that not all appraisers are
competent to perform them and many
do not like to do them. Therefore, finding an appraiser interested in performing them can sometimes be a challenge.
The decision to select the Field
Review should be one of what is the best
tool for the job. Most lenders do not
order Field Reviews unless there is a reason to suspect that there are serious
problems with an appraisal. This is usually the case, due to the additional cost
associated with it, not to mention the
additional time. Time is especially an
issue with new originations, where closing dates are set and there is often little
additional time to spend on evaluations,
requiring up top a week to complete. In
order to conserve resources, I recommend a triage-type method of determining the review tool to use. This method
begins with an Electronic Review of the
appraisal. Upon getting the results and
having them evaluated by a quality control officer, the lender decides whether
to accept the appraisal or to order a

NEVADA MORTGAGE PROFESSIONAL MAGAZINE

NationalMortgageProfessional.com

16

DECEMBER 2010

continued from page 12

more comprehensive appraisal. If a
more comprehensive evaluation is
needed, usually a Desk Review is
ordered. If the Desk Review indicates
that an inspection of the property is necessary or that some other issue requires
a closer look, a Field Review is ordered.
In other cases, where there is reason to
question the appraisal from the onset, a
Field Review may be ordered upfront to
save time and money and to get a comprehensive review.
In summary, the Field Review is the
most comprehensive and thorough
appraisal review tool available to the
lender in evaluating an appraisal. It is
also the most expensive and time-consuming. Due to the resources consumed
by the Field Review, sometimes lesser
products can do the job quicker and
cheaper, while providing adequate
quality control. The decision as to what
level of review to order should not be
taken lightly. It should be made based
upon the evidence at hand, some of
which may have been gleaned from
other appraisal review tools. Lenders
not having qualified quality control officers on staff may consider hiring someone in this capacity to make decisions
as to which review tool best serves a
particular need. Outsourcing of quality
control and appraisal review supervision may be an option for some institutions. Whatever tool is chosen, if there
is a question about which tool should
be used, the Field Review is the best
review tool in the toolbox given the
resources to acquire it.
Charlie W. Elliott Jr., MAI, SRA, is president of
Elliott & Company Appraisers, a national
real estate appraisal company. He can be
reached at (800) 854-5889, e-mail charlie@elliottco.com or visit his company’s Web
site, www.appraisalsanywhere.com.

Headlines and breaking news from
NationalMortgageProfessional.com.

the secondary market overview
Headlines and blogs from
around the web.

“Many of your competitors have
left the industry. However, new
competitors will appear just as
quickly, especially as the purchase
market recovers.”
tomorrow, next week and next
month. If you want to make $100,000
next year, what must you do to develop the referrals sources you need?
Of course, the development of your
goals is only the first step. We must also
go through an “evaluation phase” of
planning. This phase will help us look at
the effectiveness of our present activi-

continued from page 13

ties. We don’t want to eliminate those
activities that are effective. However,
we must minimize, change or eliminate
those that are ineffective. If we don’t do
that, there is no way of implementing
new activities.
Dave Hershman is a leading author for the
mortgage industry with eight books and several hundred articles to his credit. He is also
head of OriginationPro Mortgage School and
a top industry speaker. Dave’s NewsletterPro
Marketing System can be found at
www.webinars.originationpro.com. If you
would like to stay ahead of what is happening in the markets, visit ratelink.originationpro.com for a free trial or e-mail
success@hershmangroup.com.

StreetLinks completes its
acquisition of Corvisa

continued on page 21

“Not all that can be counted counts”
wrote the physicist Albert Einstein, “and
not all that counts can be counted.”
Reverse mortgage funds-usage counts
in judging whether a senior can live at
home and benefit from loan funds.
The first “yellow flag” of the Financial
Interview Tool (FIT) looks at funds-usage.
Home equity conversion mortgage (HECM)
counselors must ask whether seniors plan
to buy financial or insurance products
with cash from their reverse mortgage
loan. Then, they are to bring up realitytesting issues, such as double costs, the
risk of running out of cash to pay older
folks’ higher premiums, the risk of burning through cash they need to live on, and
the risk of losing their home should they
fail to meet home maintenance, taxes and
home insurance obligations.

“In the ‘numbers-driven’ world of
lending, asking more questions
and talking a little longer with
customers to better understand all
their needs may not be ‘efficient.’”
To do their own funds-usage risk
assessment, lenders must find ways to
discuss this issue with seniors at the loan
interview. How they do this without invit-

ing nasty “none-of-your-business” looks
and offending seniors will test their people skills.
It comes down to one strong question to begin the conversation. Your
typical “yes-no” questions about annuities and insurance in loan application
disclosures will not suffice as they are
too narrow, too close-ended and too
cold-blooded.
Originators need to compose artfullyframed questions to spark a warm conversation inn order to obtain the information and insights they need without
displeasing their customers and starting
their relationships off on the wrong footing. How to frame the questions will
depend on an originator’s question-asking abilities and the dynamics of their
interaction with seniors during the loan
interview. For illustration, I suggest the
following:
“Mrs. Akuna, if your loan application
goes through and you get all of the
cash you need and more, what other
financial, investment or insurance
products would you like to have?*
Then, listen. Listen and ask, “Why?”
Then, listen more.
continued on page 19

17

DECEMBER 2010

Ellie Mae and NetMore
America have jointly
announced that NetMore
has been added to Ellie
Mae’s Encompass360 Select
program, which is accessible to preferred
customers of Encompass360. As part of the
Encompass360 Select program, NetMore
America will be seamlessly integrated

MDA DataQuick, a
division of MDA
Lending Solutions
and an independent provider of property data to real estate and mortgage professionals, has announced that Corona,
Calif.-based Paramount Residential
Mortgage Group (PRMG) has selected MDA
DataQuick’s PropertyFinder 2G for property information verification. According

Funds Usage Matters

NEVADA MORTGAGE PROFESSIONAL MAGAZINE

NetMore America joins
Ellie Mae’s Encompass360
Select program

PRMG taps MDA DataQuick
for quality control and
underwriting solutions

FIT for Reverse Mortgage Lenders:
Part IV

NationalMortgageProfessional.com

StreetLinks National
Appraisal Services
has announced
that it has acquired majority ownership
in Corvisa LLC, a mortgage software and
appraisal management technology
firm. Terms of the acquisition were not
disclosed.
“StreetLinks is continuing to experience tremendous growth having developed a reputation for the best service,
quality and technology in the full
appraisal management space. Corvisa
brings industry-leading self-management technology to the mix. Together,
we can address the appraisal fulfillment
needs of any lender’s business model,”
said Corvisa President Matt Lautz.
“The synergy between StreetLinks
and Corvisa positions us as a ‘one stop’
appraisal management provider,” said
StreetLinks Chief Executive Officer Steve
Haslam. “Lenders can choose from a
comprehensive and full-service appraisal management solution, a self-managed software solution, or a hybrid
solution tailored to match any lender’s
specific business and compliance
needs. In addition to appraisal management solutions, StreetLinks and Corvisa
are already in the process of developing
a full suite of new and innovative valuation products that will be released
throughout 2011.”
Tony Ebeyer, StreetLinks’ chief operating officer, said, “The combination of
our talents, experience and outstanding
technical teams will allow us to accelerate our product diversification strategies. Our objective is to bring to market
a host of pre and post origination products and services that greatly elevate
what is currently available to mortgage
professionals.”
For
more
information,
visit
www.corvisa.com or www.streetlinks.com.

into Encompass360. This integration
enables NetMore America to engage in
a two-way communication providing
real-time pricing information to preferred Encompass360 users who are
approved to do business with NetMore.
Once the borrower’s information is
input into the Encompass360 system, it
is matched against NetMore’s predetermined loan criteria and pricing
results are automatically presented on
the user’s Encompass360 screen. Users
are then presented with the options to
learn more about NetMore’s loan programs and upload the borrower’s information directly from Encompass360
into NetMore’s loan origination system.
Once a loan is in process with NetMore,
users may also upload documents into
NetMore’s system, directly from their
Encompass360 eFolder.
“It is invaluable to be able to communicate with loan originators while they’re
actually originating loans,” says NetMore
America Chief Strategy Officer Lisa
Schreiber. “As part of Encompass360
Select, we can reach more originators
regardless of geographic location. This is
a great way to enhance our wholesale
brokers’ businesses and help grow our
business as well.”
“Getting accurate pricing delivered
instantaneously and automatically isn’t
just convenient, it’s also a more compliant, more efficient way of doing business,” says Ellie Mae Chief Strategy
Officer Jonathan Corr. “Our customers
appreciate the proactive way the
Encompass360 Select program responds
to information and helps them transact
more and better quality loans. We’re
happy to welcome them to the
Encompass360 Select program.”
For more information, visit www.netmoreamerica.com or www.elliemae.com.

Greg Schroeder, President
Comergence Compliance Monitoring

DECEMBER 2010

NEVADA MORTGAGE PROFESSIONAL MAGAZINE

NationalMortgageProfessional.com

18

Each month, National Mortgage Professional
Magazine will focus on one of the industry’s
top players in our “Mortgage Professional of
the Month” feature. Our readers are encouraged to contact us by e-mail at newsroom@nmpmediacorp.com for consideration in being featured in a future “Mortgage
Professional of the Month” column.
This month, we had a chance to chat
with Greg Schroeder, president of
Comergence Compliance Monitoring in
Orange, Calif. A 23-year veteran of the
mortgage industry, Greg has spent 15
years in executive management positions with large, national wholesale
lenders. He has a strong foundation in
operations, business development, sales
management and marketing with an
expertise in broker due diligence.
Comergence Compliance Monitoring is
a provider of third-party originator (TPO)
risk management solutions and compliance surveillance. Comergence conducts a
robust background check of brokers as
they apply to do business with a lender.
Their check includes a 50 state license status and derogatory reviews, industry
sanctions reviews, Social Security Number
verification for authorized principals,
civil and criminal convictions, and more.
How did you first get involved in the
mortgage industry?
I entered the business as a result of my
brother. I’m sure this is common for most

people in any business. My brother was
working as a wholesale account executive
for a lender, Westates Mortgage in Santa
Ana, Calif., and in talking to him, I was
struck by the excitement in his voice at
what he was doing. I asked him if they
needed help as this sounded like something I was interested in. Six months later,
he called and said they had an opening, so
I moved my family to Southern California
and started my journey in this business.
My first day in the mortgage business was
Black Monday in October of 1987. I had no
foggy idea as to what was happening in
the stock market that day which was probably a good thing! I didn’t even know what
a mortgage was and couldn’t spell it even
if you spotted me the two “g’s!” But I
learned quickly, was honest with the people I worked with and they came to count
on my word. Most of all, I showed up and
called people back quickly—two traits
that have served me well.
One of the common statements amongst
your former employees and co-workers
is how much of a creative and visionary
person you are. Given that your career
spans multiple decades back to a time
when advertising for financial products
was bland at best, how were you able to
work in this environment?
Back in 1987, you didn’t have the luxury of a marketing department to help
you. You had to create your own flyers
and learn how to market yourself or
your career was over. My co-workers
liked the materials I was creating for my
own use, and all of them asked me to
make flyers for them. I guess you could
say that started my career in marketing
at the lenders I subsequently went to
work for. I had a passion to support the
sales departments with a strong marketing effort. Most lenders didn’t see
the need to market or were reluctant to
spend the money, and I believe this is
why so many struggled or were never a

competitive factor. I was very fortunate
that the owners of New Century
Mortgage believed in me and my ability
to pull a team together that ultimately
became one of the most powerful marketing forces ever seen in this industry.
The environment we are in today
reminds me of 1987 when you were on
your own to market yourself, as budgets today have squeezed or most marketing departments at lenders have
been eliminated entirely.

“We are firmly committed that we
have a duty to police ourselves as
an industry and to not rely on the
government to do it.”

Since you worked for some of the
original sub-prime lenders, I wondered what your opinion was on
where it all went wrong. Sub-prime
wasn’t always a dirty word.
In my opinion, there was a confluence of
problems that culminated in the collapse
of the sub-prime market. This was a very
large industry that had many issues. I
couldn’t possibly describe for you what
happened from a secondary market’s perspective (see my second point). On the
lender side, there were many issues too,
but to me, there was always this one glaring problem in our industry that certainly
contributed to the problem:
First, the mortgage business has an
incredibly low barrier to cross to get into
this business. I’ll sum it up this way … if
you wanted to sell a Roth IRA to a customer, you had to be licensed, pass a
very difficult examination, be tracked,
have any consumer complaints and
industry sanctions reported publicly and
regularly subject yourself to an invasive
background check … just to earn a $25
commission! Our industry had no such
requirements. In most states, wholesale

account executives and most loan officers were never subjected to these
requirements and yet made six and
seven figure incomes with little or no
experience. It was indeed frightening. I
believe this industry needs to mature
and be regulated similar to the securities industry if we are to be taken seriously. That includes loan officers for any
entity, including banks.
Secondly,
as
for
the
Wall
Street/investor side of the problem, read
the book, The Big Short by Michael Lewis.
He nailed it. It is a very scary read.
In retrospect, is there anything that
services like Comergence could have
done to mitigate the collapse of the
mortgage market?
No, I don’t believe we could have stopped
this from happening. However, as the
industry goes through its inevitable cycle,
what we can do is raise the bar of professionalism going forward by giving the
relationship between lender and TPO
review a much greater level of transparency. Yes, there were bad actors in this
business and it is our singular focus to
weed them out and to keep them out of
this profession. We have successfully
raised the bar in this area and lenders are
taking notice. Lenders who do not care
about who they are doing business with
are playing with fire and ultimately hurting others, especially borrowers. We are
firmly committed that we have a duty to
police ourselves as an industry and to not
rely on the government to do it.
With the implementation of the
Secure and Fair Enforcement for
Mortgage Licensing Act (SAFE Act) to
filter out the “bad actors,” does that
diminish the value of industry certifications programs?
Not at all. In my opinion, the National
Mortgage Licensing System (NMLS) does
not go far enough. I applaud the testing,

forward on reverse

Another mentor was this one retail
store manager who was my boss. He
taught me an amazing work ethic—
that the boss must be willing to work
harder and longer than any employee.
You simply couldn’t outwork this man!
I have never forgotten his lessons—that
you must lead by example … period.
Reading business books or attending
college didn’t mean a thing if you
couldn’t, or didn’t, know how to put
this knowledge to use.
One of my current partners has also
been a tremendous mentor to me, and
he probably doesn’t even know it! I’ve
never met anyone smarter than this
man. He earned his bachelor’s degree
at two different colleges, attending
both Berkely and Stanford at the same
time! He as taught me to challenge
every thought, every idea and every
process.
“Cancer” is a word that got my attention two and a half years ago.
Thankfully, with a miracle from God, it
was caught at an early stage and I’m
fine today. But it taught me the value of
what little time I have here and how
important relationships are to me. I’m
sure you’ve heard all the clichés, but
they’re true. Having a disease as serious
as cancer causes you to slow down and
take notice of the people and things
you’ve ignored while climbing your way
to the top. Don’t wait to hear those
words from your doctor. Find something nice to do for someone less fortunate than you and pay it forward. God
will be pleased.

What do you feel is the future of the
mortgage broker?
I believe this is the greatest time ever for
mortgage brokers to enter or thrive in
this business, but you have to change
how you conduct your business and your
expectations of an income. Gone are the
loans falling from the sky. Gone are the
irrational loan programs that allowed too
many people access to borrowing. Gone

“Lenders who do not care about who
they are doing business with are
playing with fire and ultimately
hurting others, especially borrowers.”

The budget analysis piece aside, FIT is
about asking questions and talking with
seniors to understand their near-term
and long-term needs. As NCOA’s Barbara
Stucki puts it, “FIT is a way of getting people, whose judgment may be clouded by
immediate needs, to think long-term
about how they plan on staying at home
so that they can get the full value of this
loan.”
In the “numbers-driven” world of
lending, asking more questions and
talking a little longer with customers to
better understand all their needs may
not be “efficient.” It may not even be as
neat as calculating maximum claim
amounts and principal limits, but it
matters because lenders will know sen-

iors better, and help them make more
prudent decisions.
*Note: Please give me your feedback on
the strengths and weaknesses of this
question as well as your suggestions for
improvement. You may post your comments or send me an e-mail at
atare@thinkreverse.com.
Atare E. Agbamu is author of Think
Reverse! and more than 140 articles on
reverse mortgages. Since 2002, he writes
the nationally-distributed column,
“Forward on Reverse.” A former director
of reverse mortgages at Minneapolisbased AdvisorNet Mortgage LLC, Agbamu
has years of hands-on experience marketing and originating reverse mortgages.
Through his advisory, ThinkReverse LLC,
Agbamu advises financial professionals,
institutions and regulators across the
country. In a 2007 national report on
reverse mortgages, AARP cited Agbamu’s
work. He can be reached by phone at
(612) 203-9434 and e-mail at
atare@thinkreverse.com.
Visit author Atare E.
Agbamu’s blog at thinkreverse.com for his thoughts
and insights on the reverse
mortgage marketplace.
19

Sure it’s nice to have a certification
on your resume, however, how does
a mortgage professional really leverage their certifications in terms of
their relationships with lenders,
referral partners and borrowers?
The single most important change a
mortgage broker can make is to weave
any designation they have into every
conversation with a client or prospect.
Too often I simply see brokers simply
display various logos. We know what
they are, but the prospect/client has no
idea what your designation logo means.
Simply explain to the client that you are
certified, what this means to them and
why it’s important that you are.
Ultimately, you are trying to convey to
the borrower that you are a cut above,
or better than another broker that they
may be dealing with that doesn’t have
your certification. You need to create
confidence and doubt. Confidence that
you can be trusted and doubt about
anyone else they talk to that has no such
designation. These designations and
certifications can be a powerful tool if
used regularly in your conversations.

What are your biggest influences or
mentors?
There have been several influences in my
life. I have learned everything I know
from various mentors, but the ones who
stick out in my mind are my Pop Warner
football coach. Coach had this drill we
would do at the end of every practice
called the “Five Minute Drill.” I won’t
bore you with details, but suffice it to say
that drill taught me how to muster up
the strength and conviction you need to
get the job done when you are exhausted
and thinking of throwing in the towel.

Let’s say she says, “I’d like to have an
annuity. My daughter, a teacher,
says they are good.”
Using a technique called “mirroring,” you might respond by restating
her words: “You like annuities
because your daughter, the teacher,
says they are good?” Before long, you
have a conversation about annuities
(assuming you know what you are
talking about), their advantages and
disadvantages, and other fundsusage issues.

NEVADA MORTGAGE PROFESSIONAL MAGAZINE

are the easy six- or seven-figure incomes.
The playing field is more level now than
ever. For example, fees are going to be
regulated, which means that if all things
are equal now, you have to stand out in
some other meaningful way. The best
service providers, and those with the right
training and industry designations or certifications, will be in a better position to
profit from these changes.

NationalMortgageProfessional.com

tracking and the transparency it provides for licensing and license applications, but that’s as far as it goes. The
NMLS is nothing more than a clearing
house for licensing which made it easier
for the originator to apply to multiple
states by eliminating redundancy. A test
of knowledge is now required, but borrowers should assume you know what
you are doing! It’s just the minimum
threshold for every originator now.
Certification programs, however, will
take consumer confidence to the next
level. Having a certification from one of
the several associations or companies
like ours relays much needed confidence to the consumer that you are a
cut above, a mortgage professional. A
valid certification, like Comergence’s
Trusted Mortgage Professional (TMP)
designation, cannot be bought. You
must pass our rigid background check,
agree to submit yourself to our surveillance and meet experience requirements. If I was an average consumer,
that’s who I’d want working on my loan.
Merely passing your license exam gets
you entry into the game, but continuing
your education and subjecting yourself
to the scrutiny at the level of a licensed
securities broker or our TMP certification is what’s needed now.

continued from page 17

BY GIBRAN NICHOLAS, CMPS

Three Ways to Simplify Your
Relationships in 2011
Life is complex because relationships
are complicated. Simplify relationships
and you simplify your life. Here are
three strategies to do just that.

#1. Simplify your message and create a solid
foundation

DECEMBER 2010

NEVADA MORTGAGE PROFESSIONAL MAGAZINE

NationalMortgageProfessional.com

20

If you want to simplify your relationships,
you need to first examine the way you
bring clients and referral partners in the
door. If your initial message is focused on
the wrong thing(s), you will end up having
the wrong types of conversations with the
wrong types of prospects. For instance, if
your marketing messages to borrowers
and referral partners focus on how you
offer great mortgage deals, then you will
attract rate shoppers and people who are
very focused on price. A borrower would
be more likely to drop you or give you a
hard time if the competition offers a
lower price in the middle of the loan
process, because the very reason the borrower is using you in the first place is no
longer valid. This complicates the relationship. Remember, complicated relationships complicate your life. You don’t
want that.
On the other hand, what if you
changed your initial message and built
the relationship on a foundation that is
not focused on price? For example,
here are three unique messages that
are not focused on price:
Your unique message to Realtors: I
am a housing and mortgage strategist, and I specialize in helping
Realtors differentiate their listings,
attract more buyers and sellers, and
avoid buyer fallout.
Your unique message to borrowers: I am a mortgage and cash flow
strategist, and I specialize in helping
borrowers like yourself improve
cash flow, get out of debt sooner,
and avoid the dangerous pitfalls of
today’s mortgage market.
Your unique message to CPAs and
financial advisors: I am a financial
strategist and I specialize in helping
financial advisors finance Roth IRA
conversions and other unique strate-

$200 per month by refinancing or using
Loan Strategy A vs. Loan Strategy B,
what does that $200 per month mean
to their life? Are they struggling with
starting a college fund for little Suzy
and Johnny? If so, that $200 per month
gies, and also solve the negative equi- could spell the difference between
ty problem that many homeowners sending their kids to college and telling
their kids that they cannot afford to
are facing right now.
help them with college expenses. What
Your initial message needs to reach if the client is struggling with mom and
into your target audience’s world, strike dad’s aging issues? Perhaps the $200
a chord, and set up the expectations per month can be used to help fund an
upon which they can judge your per- assisted living arrangement.
You will simplify the decision for
formance and the relationship. If the initial message is about price, it will reach clients and simplify your relationship
into the world of price-conscious shop- with them if you focus on these types
pers, and they will judge the success of life issues during the client conversathe relationship based on your ability to tion. Some procrastinating borrowers
deliver a low price. If your initial message might want to complicate your relationis about value, it will reach into the ship by talking about $100 in closing
costs here or an eighth of
world of value-conscious
a point in interest rate
individuals, and they will
there. You, on the other
judge the success of the
hand, can simplify the
relationship based on your
relationship and make
ability to deliver value.
the mortgage decision
Also, your message
crystal clear and very easy
shouldn’t be about you
for the borrower by
and what you can do for
always taking the converpeople. It needs to be
sation back to the root
about people and what
issue: How your unique
they need from you. It
mortgage strategy helps
cannot be long, general
the borrower live the life
and all over the place. It
needs to be short, specif- “If your initial message that they want to live.
ic and focused on just is focused on the wrong
#3. Systemize
one or two areas. In order
thing(s), you will end
your follow-up
to simplify your message,
up having the wrong
with an easy-toyou should find out the
types of conversations
follow process
one unique value that
you provide to your tar- with the wrong types of The importance of the sysprospects.”
tematic follow-up can be
get audience that no one
illustrated by a recent
else provides. Then, you
event
involving
Warren Buffet. The world
should communicate that one unique
value in a way that sets up future con- was shocked when he announced recentversations and the future relationship ly that Todd Combs, an obscure money
manager from Florida, won the job to be
for success.
next in line for leadership of Buffett’s
$100 billion Berkshire Hathaway empire.
#2. Discipline your
Here are three lessons mortgage originaconversations and focus
tors can learn from Mr. Combs:
on the real issues
Why do people want to save money on
closing costs and get a low interest rate 1. Show up. Mr. Combs replied to a
on their mortgage? Because they would “help wanted” request that Mr. Buffett
rather do something else with that made in 2007. Most people would have
money! Your mission is figure out what been too intimidated to apply for the
else would they rather do, and then job to begin with. After all, Warren
help them do it. You see, people are Buffett is one of the world’s wealthiest
not motivated by dollars and cents. men. Why would he give the top job to
They are motivated by what those dol- someone he’d never even met or heard
of before? Yet, Mr. Combs showed up.
lars and cents mean to their life.
For example, if someone is saving 2. Follow up. Recently (three years

later), Mr. Combs followed up with
Berkshire Vice Chairman Charles Munger
to schedule a meeting. Most people
would have given up after three years of
no results. Yet, Mr. Combs followed up.
3. Be unique. Mr. Combs evidently had
something unique to offer the Berkshire
Hathaway team. According to a Wall
Street Journal interview, Mr. Munger said
that he gets “hundreds” of meeting
requests each year, but “something in
[Mr. Combs’] request piqued my interest.”
Mr. Combs became the successor and
right hand man to America’s wealthiest
individual by showing up, following up
and being unique. As a mortgage originator, you can take inspiration from Mr.
Combs and use his very simple three
step system to do business with the topproducing Realtors and financial professionals in your market. All you need to
do is show up, follow up and be unique.
Be sure to offer some unique value
with no strings attached whenever you follow up with borrowers and referral partners. Nobody wants to be hounded by a
pest. That complicates relationships and
turns people off. On the other hand, most
people would welcome some type of
value-added article or update that is relevant to their life and situation. This simplifies the prospect’s decision to like you
and trust you because you are giving value
without asking for anything in return.
Remember, complicated relationships
complicate your life. Simplify your relationships in 2011, and you will simplify your life.
Gibran Nicholas is the founder and chairman
of
the
CMPS
Institute
(CMPSInstitute.org—NMLS Provider ID#
1400384). The CMPS Institute administers
the Certified Mortgage Planning Specialist
(CMPS) designation and has enrolled more
than 5,500 members since 2005. Through
CMPS, Gibran empowers mortgage professionals with confidence, unique knowledge, and dynamic marketing resources to
simplify compliance, increase their competitive advantage, and generate more
business. Visit Gibran’s blog and Web site
at http://gibrannicholas.com.
Visit
author
Gibran
Nicholas’s
blog
at
http://gibrannicholas.com
where he shares his insights
on economics, real estate and financial issues, including the current
mortgage and credit crises.

heard on the street

continued from page 17

The Collingwood
Group announced
that it has launched
a new mortgage banking practice to be
led by former Ginnie Mae President Joe
Murin and former Federal Housing
Administration (FHA) Commissioner
Brian Montgomery. The practice will
serve mortgage bankers by customizing
strategies in business operations, regulatory compliance, capital planning
and risk management.
“The Collingwood Group’s new mortgage banking practice allows clients to
leverage our experience in the private
and government sectors,” Murin said.
“Our team is uniquely qualified to help
mortgage banking firms navigate the
uncertainty that defines the current
market environment.”
Montgomery and Murin co-founded
continued on page 23

How long does it take to perform a post-closing
audit and what is analyzed?
I get that question quite often, and I usually reply, “Your audit is based on what
you are willing to invest in it.”
Most lenders and brokers do not want to invest in a thorough audit and
only want to hit on the minimum to show that they are doing something. If
you had an employee who only did the minimum standards in tasks assigned,
how long would that employee continue to work for you? I would say not for
long because the perception from other employees of that worker and problems with oversight and gaps that are discovered along the way will create
more work for someone else to correct. Then, that below-par employee will
come up with a number of excuses or place blame for their oversights and
flaws instead of taking ownership and responsibility. This is what I often see
in post-closing quality control. The lender or broker only wants a lower quality audit, then something happens later and there is finger-pointing everywhere and the lender or broker is faced with the expense and headache of
damage control. Is it worth it in the end? Why not eliminate any potential issues right at the beginning?
For Quality Mortgage Services to perform a thorough post-closing review or
audit, it takes at a minimum of four hours. If you want the quick and easy version, it may take 90 min. to two hours. Think about what it takes to originate,
process, perform pre-funding quality control, underwrite and fund the loan.
Well, basically you want me to validate information, analyze the creditworthiness
and collateral, re-verify income, assets, funds, gift letters, occupancy, re-calculate
annual percentage rates (APRs), validate that HUD-1 disbursements were done
properly, make sure there were no federal laws violated and write up everything
found wrong in a report. Basically, perform every function in the entire loan
process and validating, certifying, and affirming that the actions in the loan
process are correct.
Just like when a city needs to cut spending … what department(s) are they
going to cut? The police department, fire department, education department …
I ask the same thing, what do you want me to cut? Appraisals, federal regulatory
compliance, APRs, re-verifications, etc.?
The “Quick and Easy” lenders and brokers … your time has arrived. Investors are pushing repurchase claims down to the lenders, and the lenders
want to share the expense of the put back with the brokers and third-party
originators (TPOs). Now is it worth it? Is Russian Roulette the game you want
to play with your quality control program? The best thing to do is not to play
the game at all.
Quality Mortgage Services wants to help you be successful by indentifying
gaps in your pre-funding QC process. The Mortgage Analysis Review Software
post-closing quality control report empowers the QC manager with the tools to
measure the effectiveness of pre-funding quality control and correct gaps left in
the loan process.
Tommy A. Duncan, CMT is executive vice president of Quality Mortgage Services LLC. For answers to your QC and FHA questions, please contact Tommy at
(615) 591-2528 or e-mail taduncan@qcmortgage.com. You may also visit Quality Mortgage Services LLC on the Web at www.qualitymortgageservices.com.

Former Ginnie Mae and
FHA heads to lead
Collingwood Group’s new
mortgage banking division

By Tommy A. Duncan, CMT

NEVADA MORTGAGE PROFESSIONAL MAGAZINE

Fairway enters the TPO
marketplace

services and sponsor mortgage brokers
and other third parties who initiate
FHA-insured mortgages for borrowers.
The step follows the company’s recent
moves into the wholesale lending and
fulfillment services markets, as well as
the recent decisions by several large
lenders to abandon or limit their business through third party originators.
Fairway offers four fulfillment
options depending on a specific originator’s needs, whether they need a
source of funds or outsourcing loan fulfillment on a scalable basis: Fairway
Traditional: A traditional broker/thirdparty originator relationship; Fairway
Advantage: A scalable fulfillment offering; Fairway Direct: A referral program;
and Fairway Correspondent: A closed
loan purchase program
“Although the mortgage brokerage
industry has gone through unprecedented changes, we strongly believe in brokers and smaller correspondents as an
origination channel and are looking forward to filling the void being created by
larger institutions,” said Howard Hoyt,
sales manager for Fairway Wholesale
Lending, a division of Fairway
Independent Mortgage Corporation.
“Independent brokers continue to play
an important role in our industry by
providing competition and consumer
choice. They need assistance to thrive,
though. With Fairway’s infrastructure,
FHA expertise, and capital resources,
brokers can get the help many of them
desperately need to keep their customer
commitments and grow their business.
We can also help them stay compliant
with new regulations such as those
under the Dodd-Frank Wall Street
Reform and Consumer Protection Act.”
For more information, visit www.fairwayindependentmc.com.

NationalMortgageProfessional.com

to PRMG chief operating officer Robert
Holliday, the mortgage group uses
PropertyFinder 2G to support its thorough
underwriting and quality control processes, including adherence to new Real
Estate Settlement Procedures Act (RESPA)
guidelines. The property information verification tool from MDA DataQuick also
validates and determines ownership
information and square footage.
“With the new challenges we face in
the current mortgage lending market, a
tool like PropertyFinder 2G is a boon,”
said Holliday.
The software helps PRMG discover
potential “buy and bail” homebuyers—
borrowers who own a distressed home,
which they are letting go into foreclosure, and are attempting to buy another
home. Buy and bail loans cannot be sold
to the secondary market or to investors,
and lenders are often asked to repurchase them. Using PropertyFinder 2G,
officials at PRMG can look up the loan
history on a property, get an estimate of
its value and look for distressed property flags, catching “buy and bail” threats
before approving the loan.
“Risk management is more important than ever, so we need to be able to
review properties quickly and easily
and see immediately if there is a problem,” said Holliday. “PropertyFinder 2G
really improves and streamlines our
quality control process.”
MDA DataQuick’s PropertyFinder 2G
gives real estate professionals access to a
nationwide database of detailed and
comprehensive property and ownership
information, including property profiles,
property history, documents, demographic information and nearby schools
and businesses, verifying them on an
interactive map. Within the interface,
users search single or multiple properties using “find as you type” technology
that presents a list of search options as
the user begins to type. The software’s
distressed property flag feature quickly
identifies properties in a distressed
state, such as recent short sales, foreclosures and real estate-owned (REO), in
search results and reports.
“PropertyFinder 2G meets the increasingly more diverse and complicated
property search and reporting needs of
real estate professionals today,” said John
Walsh, president of MDA DataQuick. “We
look forward to working with lenders’
quality assurance and underwriting
departments in order to provide a sensible risk management solution that helps
our customers become more successful.”
For
more
information,
visit
www.prmg.net or www.dataquick.com.

By David Lykken

Are You Relatable?
If I asked you, “How well do you think you relate to others?,” I would anticipate that
most of you would say, “Well truthfully, I recognize that I relate to some better than
others.” In reality, this is true of all of us. We just seem to “click” better with some
people than we do with others. Why is that? The answer will be the subject of this
month’s article.
Let me set you up for where I am going with a couple of other questions:
If I could show you how to develop skills to relate well or more effectively to a greater
number of people, do you believe your chances for success would increase?
Would more or less doors of opportunity open up for you?

DECEMBER 2010

NEVADA MORTGAGE PROFESSIONAL MAGAZINE

NationalMortgageProfessional.com

22

While those may seem like rhetorical questions as you sit there and logically
read this article, how to be more relatable is not something that most people
spend much time thinking about.
So let me pose the question that frames this article again?: “How ‘relatable’ are
you?”
If there is ever an industry where having good
interpersonal relationship skills is important, it is
the mortgage industry! While I’m sure it can be said
of other industries as well, it certainly could be said
of the mortgage industry that it is a relationship-driven business. A person’s ability to relate well to others has a direct correlation to their ability to succeed in this industry.
The reason why “being more relatable” is so
important in the mortgage business is the very the
nature of what our industry is about … financing
the biggest transaction of most every individual’s
life at least at that point in time. Whether you are
For the purpose of
dealing with a first-time homebuyer or an experibeing professionally
enced homeowner, the transaction is the biggest
financial transaction of their lives. Every Realtor and
more relatable, it is
builder I know want only to trust their business to
important to identify
those individuals who have the greatest relationship
the type of person
skills. Having strong relationship skills trumps all
you are in your
the other important skills needed to be successful in
professional/public
the mortgage industry. I’ve heard it said that being
life when dealing
successful in the mortgage industry is like being a sucwith others.
cessful guillotine operator … keeping your head when
all others about you are losing theirs. In a perverse
way, stress is one of those “binding emotions” that keep many of us in this sometimes
crazy, frenetic industry for years. We all have plenty of stories to share to give testimony to this fact. However, those of us who and have the greatest ability to relate to
others are the ones who seem to prosper the most and for the longest time in the
mortgage business. So, how can you beat more relatable … that is, what the rest of
this article is about.
It is important to point out (and may be already obvious) that I am not a behavioral scientist or even a psychology major … not even close. The authority and
experience by which I write this article and present the following suggestions is
only this … I have and continue to enjoy more than 37 years in the mortgage
industry and have discovered important keys and practical tools that have helped
me relate and connect with more people than I thought possible. And now I have
the privilege of helping many industry professionals like yourself relate and connect with a greater number of people than they ever thought possible and therefore significantly increase their potential for success.
Becoming more relatable goes well beyond behavioral “mirroring” where someone merely matches, imitates or mimics another person’s external nature while
involved in some level of social interaction. I hesitate using phrases like “developing strong interpersonal skills” which involves heuristics, because I find people getting stuck in a cerebral ditch and missing the more simplistic truths that are at the
core of the keys that most of us instinctively and intuitively experientially know.

We’ve all heard the expression, “that person speaks my language.” Another way
of saying that is, “I really relate to what that person said.” Is it “what” that person
said or a combination of what and “how” they said what they did that made them
more relatable to you? When we start plumbing the depths of this, we are beginning
to gain insights and understanding into what makes some “tic” … understanding
how they are wired so to speak. Speaking someone’s language goes way beyond “linguistics.” It is getting into something that is commonly referred to as “personality
types” or “temperaments” and you don’t need to have a psychology degree to be
skilled at reading and responding to the various personality types/temperaments of
which there are four. Nor do you have to do an extensive study into “temperament
theory” and it’s “four humours” with its possible ancient Egyptian roots or the better known writings of the Greek physician Hippocrates. All you have to do is accept
the well-understood notion that there are four basic personality types, the labels of
which were established by Hippocrates. They are choleric, melancholic, phlegmatic
and sanguine. The following is a very basic description of each.
The “choleric type” is goal-oriented, ambitious, very self-confident in what they
believes the facts to be, wants info in bullets “short and to the point,” can be a
control freak … has a very dominate personality. Think of an army drill sergeant.
The “melancholic type” is someone who is a more selfless, kind, tender-hearted, quieter, sensitive, takes on the causes of others and is more concerned
about right and wrong. Think of a bleeding heart social worker type of person.
The “phlegmatic type” is a person who thinks things through, is calm, unemotional, consistent/even temperament, rational, curious and observant, making
them good administrators and diplomats. Think of an analytical accounting
type of person.
The “sanguine type” is someone who generally is light-hearted, fun loving, a
people person, loves to entertain, spontaneous, confident and can be more selfish. They can lack focus and be impulsive. Think of cheerleader type of person.
Let me add some “color” to these personality types and some additional ways
for you to relate to each “type.”

When I am teaching on this topic in my leadership seminars, I will play music
in the background to help communicate my description for each of these personality types. When I use music, the attendees that are the Sanguine and
Melancholic types find the music a creative and fun way to learn and generally
continued on page 25

heard on the street

continued from page 21

The Collingwood Group in 2009 with
three other partners who have extensive backgrounds in mortgage finance,
capital markets, government-sponsored enterprises (GSEs) and the federal
sector. The firm provides business
investment and advisory services to
clients in banking, housing and the
mortgage industry.
“What we now provide through this
new practice is the opportunity for
today’s mortgage banker to have a
business advisor and partner in
Washington,” said Montgomery.
For more information, visit www.collingwoodllc.com.

Wells Fargo to begin
offering Pick-A-Pay relief
Wells Fargo has
announced that
beginning Dec.
18, 2010, through June 30, 2013, at-risk
Wachovia Pick-a-Payment customers
may be eligible to earn principal forgiveness by making on-time mortgage
payments. The company also will contribute about $24 million to eight
states to enlist help in customer outreach, and to prevent or mitigate the
impacts of foreclosures in these communities. The terms of this agreement
have been contemplated in the company’s financial projections, and are

expected to have no impact on thirdquarter financial results.
The program is part of an agreement
with attorneys general in Arizona,
Colorado, Florida, Illinois, Nevada, New
Jersey, Texas and Washington who
expressed concerns about the manner in
which pay-option mortgages were originally marketed by World Savings Bank
and Wachovia, who originated these
loans prior to merging with Wells Fargo
in late 2008. The agreement expands on
Wells Fargo’s existing home preservation
efforts. Through August 2010, at-risk
Wachovia Pick-a-Payment customers
already had been given almost $3.4 billion in principal forgiveness.
“In light of the unprecedented
changes in our economy, Wells Fargo
will continue to work with leaders across
the nation on steps to help stabilize
communities,” said Mike Heid, co-president of Wells Fargo Home Mortgage.
“We are pleased that Wells Fargo has
stepped forward and agreed to work
with us in avoiding another wave of
foreclosures in our states,” said Arizona
Attorney General Terry Goddard, the
attorney general who led the eightstate effort. “Their willingness to add to
their existing principal forgiveness program is important to help consumers
facing hardships who are deeply underwater in their homes.”

By Dec. 18, 2010, the company will
contact customers likely to be eligible
for the new program via letters, and
will maintain a dedicated helpline—
including Spanish-speaking specialists—to assist borrowers. Borrowers
who already have received a modification will not be eligible for the new
program. Wells Fargo customers who
originally took out mortgages through
Wachovia or Golden West who are looking for information about the loan
modification program can call (888)
565-1422.
For more information, visit www.wellsfargo.com.

a la mode’s Mercury
Network hits 10,000
appraisal transactions
per day mark
a la mode inc. has
announced that its
Mercury Network
cloud-based appraisal vendor management platform has reached its first major
volume target of 10,000 transactions a
day sustained over a full month. a la
mode’s Mercury Network allows
lenders and appraisal management
companies (AMCs) to manage their
entire appraisal workflow while being
compliant with all appraisal independence standards and banking security
regulations. Mercury combines a cloudbased SaaS core with a robust appraiser desktop plug-in architecture that
automates the appraiser’s data flow to
and from clients.

“Getting to a consistent level of
10,000 transactions a day would be an
achievement under any circumstances,
but doing it in such a slow overall mortgage market and during one of the
worst seasonal periods is a reflection of
the strength of the Mercury brand and
the superiority of our technology platform,” said Dave Biggers, a la mode’s
founder and chairman. “I’m very proud
of the team here for creating such a
high-growth product.”
Mercury’s permission-based desktop
software plug-ins work with appraisal
files from a la mode’s WinTOTAL software, as well as the offerings from
other software vendors, making it a
one-stop shop for automating appraisal workflow. The plug-ins not only
deliver order data and manage status
updates and quality control rules, but
also supply the appraiser’s original
data file back to the client as “first-generation XML,” eliminating the common
alternative of error-prone OCR extraction. Data is returned in both TOTAL
XML and MISMO XML format along with
the original appraiser-signed desktop
PDF file.
Providing MISMO XML straight from
the appraiser allows lenders and AMCs
to fully comply with Federal Housing
Finance Agency’s (FHFA’s) newly mandated Uniform Mortgage Data Program
(UMDP), and to submit appraisal
reports to the UMDP’s “front-end,”
called the Uniform Collateral Data
continued on page 24

23

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The U.S. Mortgage Crisis:
What the Models Missed
By Joseph Breeden

DECEMBER 2010

NEVADA MORTGAGE PROFESSIONAL MAGAZINE

NationalMortgageProfessional.com

24

We’re still experiencing the aftershocks sive growth targets, but it had an uninof the U.S. mortgage crisis. Conventional tended consequence. Many factors beyond
wisdom tells us that we know how the credit score and loan-to-value can drive
crisis happened: A fall in house prices credit risk. Because managers’ bonuses
nationwide (step one) triggered a wave were often tied to growth targets, the
of losses in the mortgage industry (step instructions could be translated as, “Grow
two). The losses shut down the mort- 40 percent year-over-year by defeating our
gage-backed securities (MBS) market credit scores.”
All of this can be seen in the data. At the
(step three) as traders lost confidence in
their ability to value those assets. That onset of the crisis, portfolio managers
commonly pointed to flat
led to a liquidity crisis for
origination scores as proof
the banking industry (step
that underwriting standards
four) that triggered a genhad not been lowered. At
eral recession (step five).
the same time, volume
That’s the quick and
soared for sub-prime loans,
simple explanation. But
negative
amortization
how exactly does a drop
loans, option arms, and
in housing prices initiate
adjustable-rate mortgages
such a drastic economic
(ARMs) with unsustainably
meltdown? The ultimate
low teaser rates.
answer is: It does not.
Here is where most disWhen housing prices flatcussions of the mortgage
ten or show a modest
drop, no increase should “… how exactly does a crisis end. However, we
occur in the number of drop in housing prices have additional information that doesn’t fit this
defaulted loans. Rather, initiate such a drastic
simple pattern. Using
banks face a severe probeconomic meltdown?
sophisticated analytical
lem in which foreclosed
The ultimate answer
methods, we can normalhomes cannot be sold to
is: It does not.”
ize the default rate data for
recover the outstanding
changes in the economy to
loan balance. Only when
the drop in home prices becomes measure the intrinsic credit risk of each
severe would we expect to see an month’s originations. That analysis conincrease in the number of defaults, as firms that credit quality was deterioratsome consumers choose a “strategic ing, as described in step zero, but it also
default” or walk away from their prop- shows that the problem began earlier.
erty even though they have the ability Credit quality began to deteriorate in late
2003, before the dramatic increases in
to continue paying their mortgage.
Not until July 2008 did home prices fall sub-prime and unconventional mort20 percent below their 2006 peak—the gages in 2005 and 2006. Furthermore,
level at which strategic default begins to when we studied auto loans, credit cards,
make financial sense, according to the and student loans, all showed deterioraCase-Shiller Index. That drop was well into tion in credit quality with the same timthe crisis and certainly not an initial cause. ing as observed in the mortgage industry,
Likewise, default severity would have only with less severe swings.
Further analysis of long historical time
caused problems for some lenders—but
not a true crisis—if the number of default- series has led us to the conclusion that there
ing loans had remained unchanged. The was actually another step (minus one),
answer, which has also been pointed out, “macroeconomic adverse selection.”
Normally, we think of adverse selection as
was that the loans were not normal.
We need to include an initial step (step arising from the competition between
zero) in the sequence of events. Before a lenders. If a lender’s pricing is too high or too
drop in housing prices, we experienced low relative to the marketplace, the applian extended period of time where mort- cants for its loans will not be what the modgage lenders were aggressively lowering els expect, because “normal” consumers will
their lending standards in a “rush to the be shopping the middle market.
Macroeconomic adverse selection
bottom.” Because the loans could be
securitized, less attention was given to applies a similar concept through time.
underwriting. The focus, instead, was on Consumer appetite for new debt will vary
volume growth. In 2005, the standard over time. When debt is cheaper, lowerplanning scenario by mortgage lenders risk consumers are drawn into the marfor 2006 was: We want to grow our mort- ket. Falling interest rates and low home
gage originations by 40 percent year-over- prices appeal to the value shoppers in
the population. Conversely, rising interyear, but not drop our cut-off scores.
That last phrase is critical. Establishing est rates and rising home prices will
minimum acceptable levels for credit interest only those who are forced into
scores and loan-to-value ratios was the the market, are not financially savvy or
standard in risk management for a decade.
continued on page 26
The clause was meant to soften the aggres-

heard on the street

continued from page 23

Portal (UCDP), without fear of rejection
due to OCR or data entry errors.
For more information, visit www.mercuryvmp.com.

LPS’ ClosingStream
becomes first market
solution to e-Sign HAMP
loan mod
Lender Processing
Services Inc. (LPS)
has announced that
its ClosingStream 2.0
eSigning technology has been used to
complete the first eSigned loan modification under Fannie Mae’s Home
Affordable Mortgage Program (HAMP).
Using LPS’ ClosingStream 2.0, a Webbased, consumer-friendly workflow
application with eSignature capabilities,
the servicer was able to electronically
create and send the borrower modification documents for review. The borrower was then able to review, sign, and
return the modified loan documents to
the servicer in only four hours. The
same process, administered manually,
can take as long as two weeks.
“We are very pleased that
ClosingStream 2.0 is helping financial
institutions successfully complete loan
modifications and keep people in their
homes,” said Al Verkuylen, senior vice
president, LPS Title, Closing and
Verification Solutions. “Not only does
ClosingStream 2.0 enable an efficient,
secure process for borrowers to review
and sign their loan modification agreements, it also reduces the time and
effort that is required since paper is
eliminated from the process.”
ClosingStream 2.0 complies with the
U.S. Treasury’s business requirements
for HAMP Electronic Signature Solutions
(eHAMP). The system delivers the necessary functionality for eHAMP, including
generating the documents necessary for
the modification, electronically presenting those documents to the borrower
and providing eSigning capabilities for
final execution of the documents. By
facilitating an end-to-end, easy-to-track
approach for loan modifications,
ClosingStream 2.0 users can significantly reduce document execution and
delivery errors, lower postage and
resource costs, and increase modification pull-through rates.
ClosingStream has also been used for
the past several years to facilitate
eSigning of refinances and non-government loan modifications. According to
an LPS report, 88 percent of all modification orders placed are eSigned and 77
percent of all orders are executed within two days, reducing cycle time from an
average of 10 days for traditional paper
processes.
According
to
the
company,
ClosingStream 2.0 currently supports
traditional and proprietary loan modification programs, the end-to-end HAMP
loan modification process (pre-qualifi-

Kirchmeyer & Associates,
a national appraisal,
database and real estate
appraisal consulting company and
Valligent, a provider of collateral valuation and risk management solutions
have announced the release of
ParcelView, a collateral valuation product for appraising vacant residential
land across the country. The partnership between Kirchmeyer & Associates,
Real Info and Valligent has enabled the
companies to combine their valuation
intelligence providing a single valuation resource for lenders, loan servicers, mortgage insurers and secondary market participants.
As one of a variety of valuation products offered through the partnership,
ParcelView was brought to market to
contribute to a range of services that
valuate residential parcels of land,
which would replace or enhance a
lender’s valuation tools for residential
land collateral assessment. ParcelView
is the first product of its kind to provide
the most accurate valuation and analysis on vast areas of land versus a traditional land appraisal or broker price
opinion (BPO), providing lenders with
the most accurate data and resource
information they require for residential
lot assessments.
ParcelView can save lenders up to 50
percent compared to traditional land
appraisals. Lender interest has been
focused on improving upon current
“non-traditional” valuation products, and
ParcelView offers lenders and servicers a
replacement or enhancement to their
existing collateral valuation options.
ParcelView reports are produced by experienced and certified/licensed residential
appraisers and inspections are completed by trained local analysts. Appraisers
verify zoning, determine availability of
utilities, and provide a preliminary evaluation of the feasibility of residential construction and marketability. Appraisers
also pool resources from the technology platform to evaluate complex factors
such as zoning, utilities, lot characteristics, utilizing often very limited comparable data. Comparable data is
researched and displayed along with
concise narrative support for the value
conclusion.
“Kirchmeyer & Associates and
Valligent are dedicated to the commitment of providing the most up-to-date,
accurate and efficient valuation techcontinued on page 26

a view from the “c” suite
say it was helpful, humorous and entertaining, and overall positive experience.
However, for the attendees who are the
Choleric and Phlegmatic types, they may
find the music somewhat helpful, but
are more tuned into the facts and logic.
A serious Choleric type may just find the
music “superfluous fluff” and tolerate it
for the sake of the more emotional
types. With me being a pure unadulterated Sanguine type, “this really floats my
boat” and helps me more effectively
relate what I am teaching to the attendees. I bring that up because, as you
read further down, it is important that
you know who YOU are and identify
with others from that perspective but do
so in a way that relates to the greatest
number of people. Just in case you are
interested, here’s a sampling of the
music I use. What I have found is that
the songs that relate to the greatest ages
range are those timeless “oldie but
goodie” songs, some of which have been
wonderfully redone. Here they are …

Discover and determine which of the four
personality types best represents or
describes you. Keep it simple. I am aware
that to one degree or another, we all are
“posers.” By that, I mean a fair percentage
of the population “projects” a public persona that might be different from who
they believe they really are privately. For
the purpose of being professionally more
relatable, it is important to identify the
type of person you are in your professional/public life when dealing with others. If
you struggle with this first step or if you
find yourself confused because you identify with more than one personality type,
then ask your family and/or friends for
their input. Another method is to take a
simple, sometimes free, online personality
profile assessment. To select the one that’s
best for you, I would recommend doing a
Google search for “Online Temperament
Assessment.” Personally, the assessment
that I recommend to my clients is the
Birkman assessment which can be found
at www.birkman.com. However, it is not
cheap, but highly effective. I’ve taken every
other kind of assessment that seems to
exist and have had the greatest insights
into who I am with the Birkman Method.

David Lykken is president of mortgage strategies and managing partner with Mortgage
Banking Solutions. He has more than 35 years
of industry experience and has garnered a
national reputation, and has become a fre-

To listen to author David
Lykken’s online radio show,
log on to www.blogtalkradio.com and type in “Lykken
on Lending” in the “Search” box on
the right-hand side of the page.

25

2. While studying who
you are, also start
considering the other
three personality types.
I recommend that you find others who
either already know their personality
type or share an interest in discovering/determining what their personality
type is. Ideally, they would be willing to
work with you as you begin to explore
how to relate to them. Once you have
identified at least one or two individuals that find their identity in one of the
other personality types, spend some
time getting to know them and finding
out what makes them tick. Make a list
of the things that draws them to others
and get specific. Even more importantly, find out what repels them from
wanting to do business with someone.
Begin to discover ways in which you can
get beyond yourself to relate to this person without losing sight of who you are.

3. Begin to write scripts
for yourself to follow
when interacting with and
relating to each of the
other personality types.

PROFESSIONAL .TV

Coming in 2011!

DECEMBER 2010

Begin to discipline yourself to follow
those scripts while interacting with
those of the various personality
groups. Ask for feedback as you begin
to try and relate. Identify key words
that are “reactors” that stir people up
in a negative way and may even cause
for some toxic feelings to rise and
cause them to retract from engaging in
conversation with you.

MORTGAGE

NEVADA MORTGAGE PROFESSIONAL MAGAZINE

I believe that a good number of
you reading this article are saying to
yourself, “There’s something to this …
I believe it can help me.” And for others, you are saying to yourself, “You
know what, I have heard this before,
and I know I could increase my business by being more relatable.” I further believe that many reading this
have a new or renewed desire to
increase their ability to relate to more
people. If that describes you, you will
find yourself drawn back to this article. You will find yourself compelled
to read and re-read it over and over. I
believe you will find yourself studying, pondering and mulling it over in
your mind how you can apply this
knowledge and put it to practical use
for yourself. So, let me help you get
started. There is so much to learn
about all this, and I would love to
have the opportunity to teach it all to
you, but for the sake of time and
space, I would recommend you get
started with the following actions
steps.

1. First and foremost,
identify which type of
person best describes
who you are.

quent guest on FOX Business News with Neil
Cavuto, Stuart Varney, Liz Claman and Dave
Asman with additional guest appearances on
the CBS Evening News, Bloomberg TV and
radio. He may be reached by phone at (512)
977-9900, ext. 101 or e-mail dlykken@mortgagebankingsolutions.com.

NationalMortgageProfessional.com

For the drill sergeant “choleric type”
songs like “Duke of Earl” by Gene
Chandler usually drives home the
point.
For the social worker “melancholic
type” songs like Percy Faith’s
“Theme From a Summer Place” gently sets the mood to describe this
type of person.
Then for the more logical “phlegmatic type,” the song, “Why Do Fools
Fall in Love” by Frankie Lymon gets
a good laugh.
But then, for the party animal cheer
leader “sanguine type,” songs like
Ritchie Valens’ “La Bamba” or Bill
Haley’s “Rock Around the Clock” gets
everyone up and dancing around …
well, at least the sanguine types do.

continued from page 22

There are numerous examples I use in
my seminars that I would love to share with
you, but time and space simply do not
allow. If you will begin to study the matrix
shown previously in this article, albeit very
basic, it will serve as a great starter to get
you down the path to being more relatable
and making more money in 2011.

the u.s. mortgage crisis

DECEMBER 2010

NEVADA MORTGAGE PROFESSIONAL MAGAZINE

NationalMortgageProfessional.com

26

are betting on prices to continue rising
such that they can refinance later. All are
risk-taking behaviors that are not conducive to sound lending.
An analysis of data back to 1990 shows
three distinct reversals from good-creditrisk mortgage origination to poor-quality
origination: 1994, 1999 and 2003. In each
of those years, mortgage interest rates
switched from falling to rising, and home
prices began increasing rapidly.
Macroeconomic adverse selection
contributed significantly to the U.S.
mortgage crisis, because the aggressive
growth goals of 2005 and 2006 were
based on the low industry delinquency
rates observed up to that point. Even
high-risk mortgages do not default
immediately. The peak delinquency
usually occurs two to four years after
origination. Thus, in 2005, the weakening originations from 2004 were not yet
apparent in simple reports, but the conservative, low-credit-risk consumers
were rapidly pulling out of the market,
leaving only risky consumers to meet
the aggressive growth targets of lenders.
The data makes it clear that mortgage
delinquency shocks are cyclical: 1991,
1996, 2002 and 2006-2010. In an attempt
to prevent future crises, underwriting
standards, leverage ratios and securitization are experiencing many modifications. However, none of the changes
address cyclicality in consumer appetite
for credit. All of the mortgage lender
models and policies assume that the same
prospective borrowers will be available
over time. In fact, the pool of available
borrowers changes dramatically through
time, and lenders and their models must
adapt if we are to soften future cycles.
In the modern age of retail lending,
good decision-making starts with sound
models and informative reports. Poor
models and inadequate reporting can
assume significant blame for the crisis.
The workhorse models in retail lending
have always been credit scores and roll
rates. For trading mortgage-backed (MBS)
and asset-backed securities (ABS), the
focus has been on valuation models that
take those model outputs as inputs or
pure trading models that try to predict
trends in market prices. Unfortunately,
neither method can predict turning
points in consumer appetite, underwriting standards or macroeconomic conditions that were key to the last crisis.
The industry response to the problems
has largely been to focus on loan-level
models and include more factors.

continued from page 24

Certainly, refreshed house prices, combined loan-to-value ratio (CLTV), and
refreshed credit scores can improve the
performance of failed models. Using loanlevel models is beneficial if the goal is to
trade individual loans. Even traders have
begun to realize that market-based pricing models are only as smart as the market, and we have seen that the MBS/ABS
market did not have access to or ignored
many critical factors for efficient pricing.
Even with these changes, the models
will only be as good as the factors they
include. At present, none of those factors
can capture macroeconomic adverse
selection or creative changes to underwriting standards. Nevertheless, properly
structured non-linear decomposition
models, such as dual-time dynamics and
survival models, can analyze the early
performance of loans to detect changes
to credit quality. Dual-time dynamics
successfully predicted the mortgage crisis
as early as December of 2005.
But even if we improve the models, we
must ultimately fix the reporting and
decision-making process. We often hear
that the outputs of a model must be
reduced to a simple roll-rate or score distribution report “for the executives”
because executives are accustomed to
those technologies. Unfortunately, rollrate and score distribution reports hide
important information that explain why a
crisis is imminent and can inform management on how to respond. As long as
we keep producing the same outdated
reports, we will continue making the
same flawed decisions that led to the current crisis—and may create the next.
As for where we go from here, we have
seen that macroeconomic adverse selection
leads every mortgage delinquency cycle.
Although we’re only starting to quantify and
predict this effect, we can be certain that
when interest rates begin to rise and home
prices increase again, we must look critically at the quality of the loans being booked.
Who wants a loan when both the price of
the home and the mortgage are expensive?
Joseph Breeden is chief executive officer of
Strategic Analytics, a provider of credit risk
and capital management solutions to consumer and mortgage lenders. As part of the
Interthinx business unit of Verisk Analytics,
Strategic Analytics provides advanced solutions and professional services critical to
loss forecasting and the stability of the U.S.
residential mortgage market. For more
information, call (505) 995-4755 or visit
www.strategicanalytics.com.

Closing Both Purchases
And Reﬁnances

In Less Than

10 business days!
800.981.8898 I www.uwmco.com

heard on the street

continued from page 24

nology tools to the mortgage industry,”
said Jim Kirchmeyer, founder and chief
executive officer of Kirchmeyer &
Associates. “Our partnership with
Valligent solidifies our commitment to
the industry as we continue to create
cost saving strategies to fit each client’s
needs at each stage of the loan life
cycle. Together, we are the total valuation solution.”
End users have access to a wealth of
solutions that are compliant with the
Home Valuation Code of Conduct (HVCC),
Uniform Standards of Professional
Appraisal Practice (USPAP), FHA guidelines, Fannie Mae’s electronic appraisal
delivery standards and other industry
guidelines and standards.
For more information, visit www.valligent.com or www.kirchmeyer.com.

Gleacher & Company
Inc. has announced
that it intends to
launch a residential mortgage banking
initiative. In connection with that initiative, it has agreed to acquire,
through its newly formed subsidiary,
Descap Mortgage Funding LLC, all of
the shares of common stock of
ClearPoint Funding Inc. from Greg
O’Connor, the founder and chief executive officer of ClearPoint Funding. The
acquisition is subject to various regulatory approvals and customary closing
conditions.
ClearPoint Funding is a residential,
non-depository mortgage lender based
in Marlborough, Mass. and is currently
licensed as an independent mortgage
lender in 13 states and Washington,
D.C. ClearPoint Funding is a U.S.
Department of Housing & Urban
Development (HUD) Direct Endorsed
Lender, and currently employs approximately 100 employees.
Mark Pappas, who heads the mortgage finance initiative at Gleacher &
Company and is president of the new
subsidiary, will be responsible for overseeing Gleacher & Company’s interest
in ClearPoint Funding after the acquisition is consummated. Prior to joining
Gleacher & Company earlier this year,
Pappas was one of the original
founders of MortgageIT Inc., a whollyowned mortgage banking subsidiary of
MortgageIT Holdings Inc., a public
company that was purchased by
Deutsche Bank in 2007. As president of
MortgageIT, Pappas helped to build the
company and was also a member of its
board of directors from its inception.
The acquisition of ClearPoint Funding
will reunite Pappas with several senior
professionals with whom he worked
with at MortgageIT. O’Connor will
remain with ClearPoint Funding after
the consummation of the acquisition

by Gleacher & Company and will lead
the overall operations effort of the
mortgage lender.
“Launching this new initiative is a
meaningful step in our overall growth
strategy and an important addition to
our mortgage platform,” said Eric
Gleacher, chief executive officer of
Gleacher & Company. “I am pleased
that someone of Mark’s experience and
proven track record in the mortgage
origination business will be leading our
effort.”
For
more
information,
visit
www.gleacher.com.

Emphasys Software
acquires software assets
from LSSI
Emphasys Software
has announced that
it has completed
the acquisition of
all related assets from Lending Support
Services Inc. (LSSI). Emphasys Software’s
Servicer3D and Docs3D offer solutions
for managing mortgage and loan servicing, as well as mortgage documentation preparation. LSSI is a provider of
servicing and documentation tools for
the mortgage industry.
“Emphasys is excited to expand its
integrated offerings into the mortgage
industry with such a great collection of
employees, clients and products” said
Mike Byrne, Emphasys chief executive
officer. “Our focus on products that
bring together the combination of real
estate, financial and compliance made
the mortgage industry a natural next
step for us as we look to offer our
clients great solutions that help them
drive their business.”
“Although the lending industry has
had its challenges, we have been
resilient due to our superior technology and stellar levels of customer service
as performed by our employees,” said
Cary Burch, chairman and chief executive officer of LSSI. “I am confident that
Emphasys is uniquely positioned to
build upon our technology platform
and continue to serve our loyal customer base well into the future.”
For
more
information,
visit
www.emphasys-software.com.

UrbanAmerica Advisors and
Green River Capital form
new REO joint venture
UrbanAmerica
Advisors and Green
River Capital (GRC)
have announced that they have created a
joint venture minority business enterprise
(MBE) called UrbanAmerica Res Services. The
new company combines UrbanAmerica
Advisors’ national infrastructure and
extensive local community development
relationships with GRC’s industry-leading
services for management of real estateowned (REO) properties and short sales
nationwide.

barcode that acts as a portable database. The process offers increased security, redundancy and encryption capabilities throughout the course of the
loan. Now, when documents are printed and signed by the borrower, they can
be uploaded directly into BlitzDocs
without manual classification or inserting cover pages.
“DataGlyphs enable MRG’s customers
to easily classify documents in BlitzDocs
and benefit from technology that simple barcoding lacks—automating and
accelerating the mortgage lending
process,” said Todd Moncrief, vice president of business development at Xerox
Mortgage Services. “With our customers
delivering tens of thousands of loans
into the secondary market using
BlitzDocs, we are committed to enhancing our solution with advanced technology that streamlines document management processes and reduces costs.”
Unlike most barcode systems,
DataGlyphs can vary in size and shape
and store significantly more data.
Information can also be recovered if the
DataGlyph is damaged.
“MRG seeks to provide our customers with the latest technology, both
in our own services and those we can
provide through partnerships,” said
Kathleen Mantych, senior marketing
director with MRG. “Xerox’s DataGlyphs
can cut the printing of barcoded cover
sheets by up to 90 percent and
improve on the document classification accuracy with the redundancy
inherent in the technology.”
MRG offers a browser-based system
for the preparation and delivery of compliant document packages, electronic
disclosures, loan modifications and
other services for mortgage lenders,
banks and credit unions nationwide.
MRG guarantees that its products are in
compliance with the most recent legislative and regulatory changes.
For
more
information,
visit
www.mrgdocs.com.

Wipro Gallagher Solutions
partners with
ComplianceEase
Wipro Gallagher
Solutions (WGS),
a provider of
cost-effective,
end-to-end loan origination technology
and services for financial organizations,
has announced it has entered into a
strategic partnership with San Franciscobased ComplianceEase, an automated
compliance and risk management
provider to the financial services industry. The partnership creates a seamless
integration of mortgage lending compliance audits from ComplianceEase into
the WGS fully automated loan origination system (LOS), NetOxygen.
The partnership enables customers to
take advantage of NetOxygen’s robust
functionality for lead management and
workflow management while relying on
ComplianceEase’s ComplianceAnalyzer
for real-time compliance audits that
immediately identify loans with potential compliance issues and allow users to
review detailed analysis and explanations of failures. This partnership saves
NetOxygen users time and helps them to
reduce risk by enabling seamless predatory lending and license-based consumer credit compliance checks at any
point in the lending process without the
need to rely on manual processes that
can be prone to human error.
WGS’ Web-based NetOxygen system is
fully automated and guides lenders
through every step of the lending
process. NetOxygen enables lenders to
take advantage of a streamlined service to enter, monitor and maintain
loans through a scalable platform
hosted by WGS or set up at a location of
choice. ComplianceAnalyzer provides
hosted, enterprise mortgage compliance audits that run at multiple points
in the mortgage process for comprehensive yet cost-effective compliance
risk management.

Capital Markets
Cooperative
(CMC), in partnership with WL Ross & Company LLC,
has announced a new strategic alliance
with Sun West Mortgage Company
(SWMC) where CMC lenders will have
access to Sun West’s full suite of mortgage products that include FHA 203(b)
mortgages, 203(k) rehab and 203(k)
streamline, conventional and home
equity mortgages, VA and multifamily
and the FHA HECM reverse mortgage
product. Through this alliance, CMC
patrons will enjoy premier pricing and
services, as well as advanced training
and marketing programs geared
towards CMC’s member clients.
“We’re very pleased to partner
with Sun West Mortgage Company.
The firm’s approach to offering additional mortgage solutions and longstanding Ginnie Mae direct issuer status brings new competitively priced
options to our membership,” said
Tom Millon, president and founder
of CMC.
“We are proud to partner with
Capital Markets Cooperative and member firms,” said Pavan Agarwal, executive vice president of Sun West
Mortgage Company. “CMC’s groundcontinued on page 28

27

www.windvestcorp.com

DECEMBER 2010

MRG Document
Technologies (MRG)
has announced that
it has partnered
with Xerox Mortgage Services to provide
their common customers with DataGlyphs
technology, enabling the automatic
classification of scanned and uploaded
documents into the BlitzDocs collaboration suite. MRG is a provider of mortgage
document preparation software and
compliance technology to banks, credit
unions and other lenders nationwide.
With Xerox’s patented technology,
MRG’s customers can embed mortgage
loan information on a document using
DataGlyphs, a sophisticated form of a

Sun West Mortgage and
Capital Markets Cooperative
form strategic alliance

NEVADA MORTGAGE PROFESSIONAL MAGAZINE

MRG partners with Xerox
Mortgage to offer
DataGlyph technology

In addition, mortgage regulators
across the United States use
ComplianceAnalyzer to examine the
lending operations of state-regulated
lenders. This partnership allows
NetOxygen clients to perform the same
seamless predatory lending and consumer credit compliance checks as regulators, at any point in the lending
process.
For more information, visit www.complianceease.com or www.gogallagher.com.

NationalMortgageProfessional.com

UrbanAmerica Res Services, headquartered in Dallas with offices in Salt
Lake City, Atlanta and New York City,
brings together a network of 7,000 deal
sourcing, loss mitigation, asset management and valuation professionals. It
also takes advantage of GRC’s existing
scalable technology platform. Through
the company’s affiliates, UrbanAmerica
Res Services has offices in 22 locations
throughout the U.S.
“We’ve observed that there is insufficient participation throughout this
services sector by minority owned companies and real estate brokers. These
are the very people who can most
effectively impart solutions in the communities disproportionately affected
by the crisis,” said Richmond S. McCoy,
co-founder
and
chairman
of
UrbanAmerica Res Services.
McCoy is an industry veteran with 30
years of real estate experience. Seeing
an opportunity for investors to provide
services in the under-served urban core,
McCoy, co-founded UrbanAmerica in
1998. Through McCoy’s deep and broad
relationships in industry, government,
local community development organizations, faith-based organizations and
the institutional investment community, he has led equity-raising efforts
totaling $520 million as well as the
deployment of that capital into more
than $2 billion of assets over the last 12
years.
“We expect our partnership with
UrbanAmerica to enhance and extend
the value that both companies offer to
the financial industry,” said Christopher
West, president and chief executive officer of GRC. “UrbanAmerica Res Services
is ideally positioned to maximize value
for investors while providing a solution
in situations where connecting with
borrowers can be difficult, and to create
outcomes that will aggregate the efforts
towards neighborhood stabilization.”
West has more than 22 years of
experience in the REO and mortgage
servicing industries and is a founding
partner of UrbanAmerica Res Services.
West provided the leadership that
enabled the growth of GRC into a company of more than 200 employees.
For
more
information,
visit
www.uaresservices.com.

Walter Investment
Management
Corporation has announced that it has
completed the purchase of Marix
Servicing LLC, a mortgage servicer.
Marix, based in Phoenix, Ariz., is
focused on default management, borrower outreach, loss mitigation, liquidation strategies and component and
specialty servicing.
“We are pleased to have finalized
the purchase of Marix,” said Mark J.
O’Brien, Walter Investment’s chairman
and chief executive officer. “We believe
Marix is uniquely positioned as a wellcapitalized, specialty servicer with
available capacity, leading technology,
experienced management and superior performance.”
With the close of the transaction,
Marix becomes a significant component of the Walter Investment hightouch asset management and servicing
platform, allowing the company to
expand its portfolio acquisition and
revenue growth opportunities.
For more information, visit www.marixservicing.com or www.walterinvestment.com.

DECEMBER 2010

NEVADA MORTGAGE PROFESSIONAL MAGAZINE

NationalMortgageProfessional.com

Mortgage Professionals
to Watch
Guaranteed Home Mortgage has
announced the hiring of Russ
Pfeffer as sales team manager and
Matt Sharp as market manager.
The Mortgage Bankers Association
(MBA) has announced the election of
the following as 2011 officers of the
association: Michael D. Berman,
CMB, chief executive officer of

CWCapital as chairman; Michael W.
Young, chairman of the board for
Cenlar FSB as chairman-elect; and
Debra W. Still, CMB, president and
chief executive officer of Pulte
Mortgage LLC as vice chairman. The
MBA has also announced the addition of Richard J. Hill as associate
vice president of industry technology
and Barbara Van Allen as senior
vice president of communications
and marketing.
Bliss Sawyer has joined Fairway
Independent Mortgage as a senior
loan consultant.

Bruno as commercial real estate
portfolio manager.
ICBA Mortgage Solutions has
named Scott Hall president and
Elizabeth Deal as its new executive
vice president of marketing.
Tom Schilling has been named
executive vice president and chief
financial
officer
of
Lender
Processing Services Inc. (LPS).
XINNIX has announced the formation of a nine-person leadership
advisory board consisting of:
Rodney Anderson, executive director of Supreme Lending; Bill Bent,
senior vice president of Academy
Mortgage, Hank Cunningham, president of Cunningham and Company;
Sterling Edmunds, president and
chief executive officer of SunTrust
Mortgage; Marty Garrity, senior
vice president and director of Fifth
Third Mortgage; Tom Gough, vice
president and area manager of First
Mariner Mortgage; Terry Mott, vice
president of production at Republic
Mortgage; Dan Slade, senior vice
president of United Guaranty

Corporation; and Karyn Wilson,
divisional sales executive at Bank of
America.
The National Foundation for Credit
Counseling (NFCC) has appointed
Debbie Bianucci, president and
chief executive officer of BAI, as
chair of the NFCC Advisory Council.

Your turn
National Mortgage Professional Magazine
invites its readers to submit any information, events, passages, promotions,
personal or professional occurrences
that seem appropriate and/or other pertinent data to the attention of:

Heard on the
Street/Mortgage
Professionals to Watch
column
Phone #: (516) 409-5555
E-mail:
newsroom@nmpmediacorp.com
Note: Submissions sent via e-mail are preferred. The deadline for submissions is the
1st of the month prior to the target issue.

Bliss Sawyer

Landon V. Taylor has joined Dorado
Corporation as senior vice president
of business development.

National Mortgage Professional Magazine
Landon Taylor

J.I. Kislak Mortgage LLC has appointed Thomas Wind managing director.
Matt McLean has joined a la mode’s
Mortgage Solutions Division as
national sales director for the south
central region.
Julia Davey has joined Pro Teck
Valuation Services as senior national sales director.
Wolters Kluwer Financial Services
has announced the hiring of J. Phillip
Hough Jr. as commercial real estate
relationship manager and Carol A.

Learn more at www.ProClose.com.
Contact us at 800-783-2283 or
sales@proclose.com.

recognizes the support of those Mortgage
Professionals who have stepped up to pay tribute
to the men and women who have fought to
preserve freedom for our great country.
We will be featuring these Mortgage Professionals in
our Mortgage Heroes feature in National Mortgage
Professional Magazine.
We want to hear from you if you:

# Make significant donations to any veteran's organizations
# Hosts or sponsors events recognizing and paying tribute
to veterans

# Provides support for the families of veterans
# Any other noteworthy assistance to help improve the
lives of veterans and their loved ones

To be considered for Mortgage Heroes, visit

NMPMag.com/mortgageheroes.

SaM Solutions US unveils
new LOS

announced
the
release of Point
and PointCentral 7.3. Point combines
continued on page 30

DECEMBER 2010

FICO has announced
that its latest credit
scoring product, the
FICO 8 Mortgage
Score, is now available from all three

NEVADA MORTGAGE PROFESSIONAL MAGAZINE

Calyx announces the
FICO 8 Mortgage Score now releases of Point and
PointCentral Version 7.3
available from top three
Calyx Software has
credit reporting agencies

29

NationalMortgageProfessional.com

SaM Solutions US
has released Engage,
a loan origination
and processing system designed for community banks, brokers, credit unions and midsized banks
that they can deploy from the initial
application to the funding stage of a
mortgage. SaM Solutions has more than
15 years experience in building, releasing
and maintaining software solutions for
the mortgage and financial industries.
“This system provides users with a
technologically sophisticated, elegant,
seamless, and intuitive loan origination
system,” said Aaron Cope, director of
business development for SaM
Solutions. “We think this system represents the next generation, one that
brings a level of sophistication that didn’t previously exist in the marketplace.”
The LOS was designed to be customizable to fit the needs and workflows of clients. “We designed this system to be adaptable and that meant
that we made it easy to customize and
inexpensive to do so,” said Cope.
Engage Loan Origination System is a
solution for origination and processing
mortgages, covering the origination
process from the application to when
the loan is approved and funded.
Engage User and Client Management
helps users manage the system, including creating new accounts, granting
permission to view activity reports and
establishing a permissions policy. In
fact, administrators are able to define
access levels through an application
that walks them through each step of
the process.
Engage Business Rules Engine provides an intuitive, powerful method for
setting up business practices such as
origination and underwriting guidelines, price and rate adjustments, and
default loan fees separately by client,
state and product. Each product option
can be setup in the rules engine.
For more information, visit www.samsolutions.com.

major U.S. credit reporting agencies.
Mortgage lenders now have access to more
precise risk assessment tailored for the real
estate market, which can help support
market stability and reduce borrower,
lender and investor risk.
The FICO 8 Mortgage Score was built
specifically to help mortgage lenders
better predict mortgage performance
and improve credit decisions for both
current and prospective homeowners.
The score analyzes the full credit history on file to deliver significantly sharper
assessment of mortgage repayment
risk, and aids servicers in earlier identification of borrowers at risk so they can
mitigate the incidence and high cost of
foreclosure.
“The FICO 8 Mortgage Score’s broad
availability means that all U.S. lenders
and servicers can now easily access scores
that are fine-tuned for mortgage performance,” said Jordan Graham, executive vice president of scores and president of consumer services at FICO.
“Moreover, by combining this superior
predictive performance with the FICO
Economic Impact Service, lenders are
able to adjust policies and strategies
quickly based upon forward-looking
economic modeling. This is what we
mean by the FICO analytic advantage:
the ability to use the most advanced
predictive analytics to compete and win
in this highly challenging environment.”
The FICO 8 Mortgage Score retains
the same 300-850 scoring range, minimum scoring criteria, authorized user
and inquiry treatment as the generalrisk FICO 8 Score. To achieve its significant increase in predictive strength,
FICO Mortgage Score assesses several
additional data variables from consumer credit files to specifically predict
mortgage repayment risk. Accordingly,
FICO Mortgage Score includes additional score reason codes compliant with
the Fair Credit Reporting Act that help
lenders understand and explain the
scores to applicants.
For
more
information,
visit
www.myfico.com.

new to market

continued from page 29

the latest technology with the functionality that mortgage professionals
require for loan marketing, prequalification, origination, and processing.
PointCentral’s server platform unites
Point with business rules, remote
access, and consolidated data storage.
Version 7.3 simplifies compliance for
users with intuitive fees worksheets
and synchronization of important data
and includes support for users utilizing
terminal services.
Point 7.3 offers updated compliance
requirements including improved
Good Faith Estimate (GFE) and Truthin-Lending (TIL) screens along with a
new HUD-1 screen and form. The GFE
Provider List has been enhanced to
print either with or without fees
shown. Point 7.3 also allows users to
copy fees from either the Fees
Worksheet or the Fees & Impounds
screen into initial or final disclosure
forms, either as a group or individually. This feature gives Point users
greater flexibility in a more functional,
yet easier, disclosure process. Point has
also been improved to facilitate document management throughout the
loan process with document stacking
and packaging capabilities.
The enhancements to the serverbased PointCentral 7.3 are also dedicat-

ed to compliance and flexibility. With
14 pre-built and customizable compliance rules, PointCentral gives users the
ability to implement compliance policies that best suit their company procedures. A new action-based rule for
printing allows administrators to control printing by user or user group.
“7.3 was developed out of a need to
make compliance easier for our users
with the functionality they need to
manage their business processes” said
Doug Chang, president of Calyx
Software. “As regulations grow more
numerous and complicated, we listen
to our users and respond as quickly as
possible with products that make a
positive difference for them.”
For more information, visit www.calyxsoftware.com.

Byte announces the
release of BytePro
Version 5.0
Byte Software, a
provider of mortgage
software for banks,
credit unions, mortgage bankers and
mortgage brokers has announced the
release of BytePro Version 5.0. This new
version focuses on back-office mortgage
banking features with support for under-

30

Learn from:

National Mortgage Learning
Foundation, Inc. (NMLF)!

DECEMBER 2010

NEVADA MORTGAGE PROFESSIONAL MAGAZINE

NationalMortgageProfessional.com

NMLF, a non-profit educational foundation, provides licensing and continuing education
training, was the first education provider to be approved by NMLS to teach SAFE-Act
classes in Georgia. Our students’ high rate of success has resulted in mortgage
companies outside Georgia inviting NMLF to travel and train.
Frank “Paco” Torch, CRMS, CITRMS,
of “Paco Speaks” Founder, NMLF
• 12 Years of Experience as NAMB Certified Instructor

nmlf@graduate.org
770-751-9820
www.nmlf.us

1400038

Testimonial, John Parlante,
Sr., VP of Capital Mortgage
Services, Inc.: “Of the 15-20
employees of ours who have
taken your pre-licensing
classes, all of them passed
the Federal and State tests
on their first try.”

writing, secondary marketing, closing,
funding and shipping.
In addition, BytePro 5.0 contains
new automation features, the revised
Truth-in-Lending (TIL) disclosure,
enhanced document management
capabilities and new service providers.
BytePro’s new mortgage banking features enable mortgage lenders to sell
loans on the secondary market via
mandatory or “best efforts” commitments. The new lock desk allows originators to request locks for approval by
secondary marketing. All lock desk
activity is automatically logged, providing a history of accepted locks, rejected locks, re-locks and lock extensions.
The new secondary marketing screen
tracks buy-side and sell-side pricing,
net margins, and final pricing from the
purchase advice. Additional screens
are provided for funding, closing and
shipping.
“BytePro has always been a powerful tool for mortgage originators,” said
Joe Herb, Byte’s general manager. “Our
latest 5.0 release takes a significant
step forward, enabling mortgage
lenders to use BytePro as an end-toend mortgage lending solution for the
entire process from origination
through investor delivery. It manages
the workflow of the back office allowing lenders to track, monitor, report
and set business rules to meet their
unique business requirements.”
BytePro 5.0 also contains the revised
Truth-in-Lending disclosure (TIL) that is
federally-mandated for all loans originated on or after Jan. 30, 2011. BytePro
5.0 allows mortgage companies to continue to use the old TIL prior to Jan. 30,
2011 and roll out the new TIL when
they are ready. Electronic document
management in BytePro has been
enhanced in version 5.0 with the ability to automatically store documents
every time they are printed, saved as a
PDF or e-mailed. This auditing feature
allows management to determine not
only which disclosures were provided
to borrowers, but also the exact contents of those disclosures.
In addition, two existing interfaces
have been updated: The CBC Flood
interface now imports HMDA census
tract information, and the MRG document preparation interface now links
to MRG’s compliance center for
updates and state-specific regulatory
changes.
For more information, visit www.bytesoftware.com.

Lenders One develops
lead deployment strategy
for its members
Lenders One
Mortgage
Cooperative,
a
national
alliance of community mortgage
bankers, correspondent lenders and
suppliers of mortgage products and
services, has announced that Altisource
Portfolio Solutions, the parent of
Lenders One’s management company,
has developed a lead deployment strat-

egy to provide Lenders One members
with viable pre-approved borrowers in
their respective markets.
“This strategy aligns with our company’s mission to help our members to
maximize their revenues, minimize
their expenses and expand their market share. We are very pleased that this
new strategy will help our members to
close more loans,” said Scott Stern,
Lenders One chief executive officer.
“Providing strong qualified leads
through Altisource is an obvious dividend to our members, and the capability validates the power of being part of
the Altisource family to the overall fulfillment of our mission.”
“While Lenders One already provides
its members with professional training,
national marketing campaigns and
many other products and services to
meet the goals of its mission,” Stern
said, “It was paramount to also offer a
successful lead generation program to
expand the services the company offers
members. Not only will our lead generation activities benefit our members,
who will close more loans and order
more products, but our other partners,
including our preferred investors and
vendors, will benefit as well.”
Through the lead generation strategy, Lenders One members pre-qualify
or pre-approve potential homebuyers
who apply through a Web site,
GoHoming.com, owned by Altisource.
Each potential homebuyer is directed to a specific Lenders One member
with an office in the homebuyer’s local
market. Working with GoHoming.com’s
national presence, Lenders One, with
more than 180 members across the
U.S., can now refer a homebuyer to a
local lender in every major and midmajor market in the country. This venture helps Altisource identify potential
new homeowners as well as reach the
goal of touching the span of the mortgage process.
For more information, visit www.lendersone.com or www.altisource.com.

RATA announces the
release of HMDA/CRA
data analysis tool
RATA Associates,
a provider of
Home Mortgage
Disclosure (HMDA),
Community Reinvestment Act (CRA) and
Fair Lending compliance software and
geocoding services for financial institutions, announced availability of the 2009
HMDA/CRA Data for its Comply Peer-2Peer. Comply Peer-2-Peer is a Webbased tool designed to help institutions
gauge how their lending activities compare and rank with competitive institutions. Built on the same .NET technology platform as the RATA Comply Suite,
Comply Peer-2-Peer offers institutions
the power and flexibility needed to
analyze HMDA/CRA data released each
year by the Federal Financial
Institutions Examination Council
(FFIEC). With the recent release of the
2009 data, institutions using Peer-2Peer can now evaluate and compare

last year’s lending activity with other
institutions’.
“Each year, lenders spend an
immense amount of time collecting
and submitting HMDA and CRA data to
maintain regulatory compliance,” said
John A. Woloshen, executive vice president and chief operating officer for
RATA. “Generally an arduous task, the
data collected can significantly
improve marketing efforts and business operations if used properly.
Lenders that take advantage of this
data are better positioned in the marketplace, but having the right tools in
place can impact how quickly and efficiently strategic changes are made.
With Comply Peer-2-Peer, institutions
can easily analyze data to identify areas
of weakness and potential growth.
Knowing this information immediately
is critical to successfully building or
changing a marketing plan.”
Using Comply Peer-2-Peer, institutions can analyze HMDA/CRA data using
various criteria, including geographic
location or loan volume. Lenders can
also directly compare themselves with
specific competitive institutions.
Comply Peer-2-Peer can generate different types of reports based on the
institution’s needs, including top peers,
ranking, market share, pricing, spatial
assessment, etc. Furthermore, because
this product is web-based, it is a cost
effective solution with no huge database to load or programs to constantly
update.
For more information, visit www.rataassociates.com.

ICBA and LenderLive
announce the launch of
ICBA Mortgage Solutions

LPS Property Tax Solutions
unveils new non-escrow
tax functionality

SigniaDocs announces
eWarehouse lending
solution to track
mortgage notes
SigniaDocs, a
national eMortgage
and document
solutions provider,
has announced that it has provided an
automated system to address one of the
biggest challenges in the eMortgage
landscape—the warehouse lending
process. SigniaDocs’ platform was
recently utilized by one of the first nondepository mortgage lenders to close
an eNote and have it funded by a
warehouse lender.
“Warehouse lending in the paper
world has certainly been reduced due
to the financial crisis of the past few
years. Warehouse lenders are understandably risk-averse by nature, and
the ‘wet funds’ advance required for
closing under today’s slow paper
process just adds to their concerns.
Being able to shorten a 24-48 hour
process down to seconds will certainly
provide new comfort,” said Paul
Anselmo, chief executive of SigniaDocs.
SigniaDocs’ eVaulting and eClosing
system for originating lenders solves
the technical side of this business challenge with an open solution that can
interface with any warehouse lender’s
eVault, using MISMO standards and the
MERS eRegistry and eDelivery systems.
“During the closing process, as soon
as the eNote is signed, our eVault automatically performs a series of steps:
The eNote is registered on the MERS
eRegistry on behalf of the lender, a
copy of the eNote is delivered to the
warehouse lender’s eVault, and the
lender
transfers
Control
and
Location—the equivalent of ownership
in the paper world—to the warehouse

lender,” said Harry Gardner, chief strategy officer of SigniaDocs. “All of this
happens within seconds, under automated control. We worked closely with
our partners at Cooper River Financial
and CMG to provide them with an
eWarehouse solution with maximum
assurance and minimum risk.”
The automated solution greatly
increases the velocity of the warehouse
lending process. Instead of waiting for
the original paper note to be shipped
to the warehouse lender after closing,
and then shipping the note to the
investor under bailee letter, the warehouse lender receives the eNote a few
seconds after it’s signed and can immediately eDeliver it to the investor to
examine for purchase. As soon as the
investor is ready, the warehouse lender
can transfer Control and Location to
them. The entire warehouse lending
process, from origination to investor
purchase and replenish of the warehouse line, is complete within a couple
of days. To cover all of the legal bases,
the lender, warehouse lender and
investor also typically create a “triparty” agreement among them.
For
more
information,
visit
www.SigniaDocs.com.

Mortgage Builder
announces LOS upgrade
Mortgage Builder
Software, a provider
of loan origination
systems (LOS) technology, has
announced a major upgrade to the electronic document management (EDM)
capabilities of its award-winning platform. The new, digital imaging and
paperless functionality is completely
integrated into Mortgage Builder’s
renowned origination system, bringing
new levels of efficiency and sophistication to the company’s users within
lending institutions of all sizes.
This new Mortgage Builder technology represents a complete and fully
integrated digital alternative to using
paper in the lending process. The benefits for lenders in having the capabilities seamlessly integrated into the LOS
rather than as a third-party add-on are
immediately evident. Users save time
continued on page 38

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31

NEVADA MORTGAGE PROFESSIONAL MAGAZINE

Lender Processing
Services Inc. (LPS)
has announced the
release of Version
2.0 of the LPS
Desktop Tax Management application.
This release incorporates new nonescrow functionality that will enable
servicers to electronically load and
match non-escrowed tax search results,
track delinquency letter cycles, pay
delinquent taxes and build tax lines for
escrow collection.
Investors are increasingly concerned
with ensuring that servicers are effectively managing their non-escrow portfolios to minimize losses and penalties
related to delinquent taxes. In the past,
these tasks not only involved a high
level of manual work, but also required
tax staff to access multiple systems to
complete their non-escrow cycle processing. LPS Desktop Tax Management
brings all of the non-escrowed tax tasks
into a single system using customized
business rules to automate a large portion of the processing. The system
leverages integrations with LPS
Desktop, tax vendor systems and the
LPS MSP system to create a seamless
flow of data between applications—
resulting in higher efficiency, increased
data accuracy, accelerated processing
timelines and reduced risk of tax-related financial losses on the part of the
lender/investor.
“After our initial success with
automating tax processing on
escrowed loans with LPS Desktop Tax
Management, we realized that by
enabling servicers to use the same
principles to automate the processing
of non-escrowed taxes, lenders could
achieve significant savings, reduce risk
and attain a much broader understanding of the tax status on nonescrowed loans in their portfolios,”
said Ray Ferrarin, managing director

of LPS Property Tax Solutions Inc. “We
believe that by using LPS Desktop Tax
Management, clients will increase efficiency when processing loans with
delinquent taxes, which will help
clients reduce tax-related losses and
improve portfolio performance, both
of which are critical to their future
success.”
For
more
information,
visit
www.lpsvcs.com.

NationalMortgageProfessional.com

The Independent
Community Bankers
of America (ICBA)
and LenderLive
Network Inc. have announced the
launch of ICBA Mortgage Solutions, a
multi-functional suite of mortgage
services designed to help ICBA member
community banks continue to originate, process, close, fund and sell residential loans.
“Main Street community banks are
relationship lenders that continue to
serve the needs of their local customers
nationwide by providing common-sense
mortgage loans that they can afford and
afford to keep,” said Ron Haynie, president and chief executive officer of ICBA
Mortgage Corporation, the mortgage
services subsidiary of ICBA. “ICBA
Mortgage Solutions is a testament to our
dedication to offering value-added services to our member community banks
as it will provide them with greater
access to high-quality mortgage products, easy-to-use technology and the
necessary tools to manage risk.”
To bring this platform to the market,
ICBA Mortgage has partnered with
LenderLive Network Inc., a provider of
mortgage technology and loan fulfillment services. Based in Denver,
LenderLive is the engine for ICBA
Mortgage Solutions.

“As a community banker, I have no
doubt that ICBA Mortgage Solutions
will heighten the ability of community
banks across the nation to offer their
customers residential loans while sticking to the common-sense lending principals that have always been the hallmark of community banks,” said Terry
Jorde, chairman of ICBA Mortgage and
president and chief executive officer of
CountryBank USA in Cando, N.D.
“We are extremely excited about the
launch of ICBA Mortgage Solutions and
our partnership with ICBA Mortgage to
bring this offering to community
banks,” said Rick Seehausen, president
and chief executive officer of
LenderLive. “We feel strongly that the
recent changes in the mortgage industry represent a tremendous opportunity for community banks to grow market
share in mortgage lending and stabilize
the primary origination market with
high-quality loan originations.”
For
more
information,
visit
www.icbams.com.

The Seven Keys to Building
Successful Relationships
By Louis Tesoriero

DECEMBER 2010

NEVADA MORTGAGE PROFESSIONAL MAGAZINE

NationalMortgageProfessional.com

32

Despite all of the books and articles writ- ly. In addition, mortgage professionals
ten on building successful business rela- often represent the only source for peotionships, every author expresses essen- ple outside the industry to gain an
tially the same message by focusing on understanding of relevant procedures
seven key characteristics. This article and expected outcomes. In fact, profesaddresses them as they relate to the sionals of all industries seem more willmortgage industry, but they are found in ing than ever before to introduce their
clients and business partners to estaball successful business relationships.
Of course, no list can claim to be all- lished mortgage professionals.
encompassing, yet seven clearly distinguishable traits show up again and again, and by 1. Commitment
enumerating them clearly with comple- Commitment undergirds all successful
mentary action, this article will help you relationships. Developing relationships
takes time, energy and
achieve key goals in an easydedication. You should
to-follow approach. In fact,
schedule follow-ups with
all of our relationships can
others, as well as on your
be deconstructed into these
own calendar, and try to
key characteristics and
maintain weekly commuimproved through tangible
nications with your key coland simple suggestions.
leagues and clients. A simBusiness relationships
ple phone call to say hello,
have become more impordropping a letter in the mail
tant now than ever before
or a quick e-mail will yield
and can be easily cultivated
significant dividends. You
because people are sharing
should avoid taking your
and helping each other during these difficult economic “Relationships require relationships for granted.
Of course, all relationtimes. In the past three commitment and take
ships will undergo cyclical
years, the growth of social
time. Always be genpeaks and valleys, perhaps
networking Web sites such
uine and deliver value
due to a challenging transas LinkedIn, Facebook and
without expecting an
action or a difficult busiTwitter have led to more
immediate payoff.”
ness cycle. However, if you
business relationships than
remain vigilant and try to
during any other time during my 12 years as a mortgage professional. foster mutual commitments, the impact
In addition to social networking, a of changing circumstances will be diminrenewed enthusiasm for traditional ished and any stress on your relationnetworking has emerged, and technol- ships will decrease.
ogy has facilitated the initiation, development and maintenance of many 2. Authenticity
relationships. A renewed energy for Authenticity provides a key indicator of
interpersonal activity has taken hold in long-term success for mortgage and any
our industry, and, if you are commit- sales professional. You must constantly
ted, you can build great relationships. remind yourself to be real and sincere.
With the challenges of increased regu- Working with people you enjoy helping
lation, mortgage professionals need to will result in mutual success. Avoid
cooperate to survive; thus, competition false friendships and alliances simply to
has diminished amid the necessity for make a quick sale or get what you
want. Authentic people will see right
professional relationships.
The mortgage industry has been sub- through you. Everyone wants to work
jected to tremendous change, and the with authentic people because you
frequency and accuracy of internal always know where you stand and thus
communications has grown according- a more productive relationship ensues.

3. Add value
Adding value gives people a reason to
associate with you. You should always
offer to give more than you expect to
receive, without any consideration of what
you may get in return. Offer your expertise;
contribute to someone else’s success.
Boost their marketing efforts; write a guest
column for their blog or newsletter. Apply
to become a guest speaker at their next
sales meeting or networking event; share
your industry perspective as a subject matter expert without self-promotion.
The more value you provide, the
stronger your relationships will become.
Your industry knowledge will serve as a
valuable resource for business partners
and clients alike. Providing leads represents one of the most powerful actions
you can take, and by introducing others
to people in your network, you can win
long-term allies. This strategy has
become essential to the success of
LinkedIn and can take you a long way.
Sometimes, your network may represent your greatest resource.

4. Think long-term
Think long-term; forget about the sale; it
will come. If you try to move too fast, you
will look desperate. Relationships take
time to develop as you need to develop
trust and mutual respect. Often, relationships lead to more relationships and a single relationship may open up an entirely
new network. You never know how a relationship will impact your business.
Remember, ongoing opportunities to offer
your services trump achieving a single sale.

5. Confidence
Instill a sense of confidence in yourself.
Be proud of what you do despite the negative publicity about the mortgage
industry. We provide an essential service
by helping homeowners and investors
reach their goals. Share your industry
knowledge with enthusiasm and conviction. Keep current with industry changes;
stay sharp: Knowledge and preparedness
contribute to your confidence as a professional. You will receive more referrals
and introductions if you proceed in a
confident manner because your relationships will, in turn, feel more confident
about introducing you to their network.

6. Professionalism
Professionalism and consistency build relationships because they testify to your ability
to get the job done. Be considerate of oth-

ers’ time, interests and needs. Be deliberate;
explain exactly how you can help people
grow their business and how they can help
you grow yours. A mutually-beneficially relationship is the best kind. Be on time and
prepared for meetings. Be honest, set realistic expectations and deliver information
with integrity. Communicate good news and
bad news in a timely manner. Approach
conflicts and challenges head on; address
pertinent issues and offer simple solutions.

7. Maintenance
Once you have initiated a relationship,
you must nurture it and make it flourish.
All relationships require maintenance,
and this brings us back full circle to our
first item, commitment. You must commit to staying in contact and to constantly add value. Relationships must be
refreshed with new ideas and ways to
help each other grow. Stay committed to
making new introductions to your exiting
relationships. Maintenance separates the
professional from the amateur. An abundance of technology can help you stay
connected. Invest in a CRM tool and use it
to maintain contacts and consistent communications. Follow due diligence when
investing in technology because complicated tools may generate more work than
they save. Try to keep your enthusiasm
level high in order to maintain relevance.

Conclusion
Remember, relationships often fail to provide measurable value, but you should
consider each relationship an opportunity
to practice and improve your relationshipbuilding skills. Sometimes, you must give
to receive, and relationships can lead to
powerful introductions. Of course, you
should always treat everyone with respect,
and keep in mind that you will reach your
goals when you help others reach theirs.
Relationships will fade if you neglect
to stay in touch and can take more time
to rebuild than to create if you must
repair damage. Relationships require
commitment and take time. Always be
genuine and deliver value without
expecting an immediate payoff.
Surround yourself with professionals, and their success and expertise will
continue to enrich your life.
Louis Tesoriero is business development
manager for Guaranteed Home
Mortgage Company. He may be reached
by phone at (914) 696-3400 or e-mail ltesoriero@ghmc.com.

FHA Insider: Build Relationships
Through FHA Updates
By Jeff Mifsud

simple FHA update. Prepare, Promote
and Present, and make it a habit.
Go FHA!
Jeff Mifsud is founder of Michigan-based
Mortgage Seminars LLC, a former FHA
underwriter with 15-plus years of experience originating FHA loans, an FHA
expert for LoanToolbox.com and creator
of The FHA Originator, a monthly FHA
newsletter. Jeff may be reached by
phone at (248) 403-8181 or visit
www.MortgageSeminars.com.
Visit author Jeff Mifsud’s Web
site at http://mseminars.com
for tips and information on
FHA loans and details from
some of the nation’s top FHA specialists.

One of the most common questions relationship-building opportunities.
loan officers ask is, “How do I get in Please note that I used the word
front of more Realtors?”
“habit,” because when lead generating
One answer in today’s market is by actions become habitual, then you
doing Federal Housing Administration know it will get done on a consistent
(FHA) presentations. According to a basis. The greatest challenge of an MLO
Mortgage Bankers Association (MBA) (or any salesperson, for that matter) is
survey conducted this past October, to make the most productive behaviors
FHA mortgage applications jumped habitual. How much time is wasted
17.2 percent, and given the changes to doing what I call “spin tasks,” that don’t
our industry, FHA is likely to remain a do anything to move you closer to your
significant percentage of loan produc- goal? For example, how much time do
tion in the coming years.
you spend checking
In the last three years
unnecessary e-mails or
alone, there have been
visiting Web sites that are
approximately 650 changes
time-killers? The most
to FHA programs. It’s hard
valuable thing you have
enough for mortgage loan
is time, so how do you
originators (MLOs) to keep
use it?
up with the changes, so
you can imagine how
The 30-day
much real estate agents
challenge
actually know about FHA.
Over the next 30 days,
And yet, many of these FHA
make a commitment to
changes are really imporprepare a recent FHA
tant for real estate agents
update that is relevant to
“The greatest
to know about. This creates challenge of an MLO
real estate agents. Give the
a wonderful opportunity
presentation a catchy title
(or any salesperson,
for you to take this inforlike “How FHA Has Become
for that matter) is to
mation into real estate
Even More Affordable for
make the most
offices throughout your
Your Clients and More
productive behaviors Profitable for Realtors” and
area!
habitual.”
One of the greatest
promote the presentation
challenges a real estate
until you get appointments
broker has is providing quality training with 10 real estate offices. You’ll likely
to their agents. I have always found need to make about five calls to get one
great success in getting into real estate appointment, so be prepared to make a
offices and putting myself in front of total of 50 calls. Make sure you speak with
many agents to generate loans. When I authority and passion about the topic in
think of why I was able to get in front order to get them excited about bringing
of more agents than your average MLO, the information to their agents. Now you
I think it comes down to two funda- are ready to present. The goal of your
mental reasons: Knowledge and pas- presentation is not only to give them the
sion. It’s one thing to have the knowl- valuable information, but to present your
edge, but if the passion is not present, content in a way that engages them and
you will not be able to inspire others to elicits questions from the audience. I rectake action.
ommend just using a simple flyer as the
presentation tool, since this will force you
The “Three P Strategy”
to connect with the audience. As a public
Over the course of my career as an speaker, I have to work much harder to
MLO, I developed a simple strategy that engage the audience when I use a
I have used to build great relationships PowerPoint presentation, because people
with real estate agents through short sit and watch the screen, creating a barriFHA presentations. I call it “The Three P er between you and the audience.
Strategy,” which stands for “Prepare,
At the time of the presentation, be
Promote, and Present” (FHA guidelines sure to have everyone sign a registration
can be really boring so I make these lit- form that collects their e-mail addresstle strategies to give more meaning to es, and let them know that you will
what I do). Use this strategy as a means keep them updated on news that affects
to get yourself in the habit of taking their business (make sure you respect
FHA updates and turning them into this and do not spam them). After the

presentation, stick around to answer
questions and build rapport with the
agents. During this time, you will connect to certain agents and it’s these
agents with whom you will want to
make follow-up appointments to get to
know them better and establish a more
meaningful personal relationship. After
about 10 presentations, you should
have increased your core of solid
potential referral sources by at least 15
agents. From here on out, you have to
maintain the relationship and grow it;
new referral sources take time to develop. A goal of closing two transactions
per year with each of these agents will
give you an extra 30 loans per year. If
your average commission is $1,000 per
loan, that’s an extra $30,000 from a

Strengthen Relationships
With Social Media
Making profitable connections is
easier than ever before
By John Seroka

DECEMBER 2010

NEVADA MORTGAGE PROFESSIONAL MAGAZINE

NationalMortgageProfessional.com

34

The social media phenomenon has cer- before our eyes. It’s a fundamental shift
tainly produced its share of dizzying from the way mortgage marketing was
statistics. There’s the one that notes done even as recently as five years ago.
that if Facebook were a sovereign
nation, its 500 million users would A new way of marketing
make it the third-largest country in the Mortgage professionals traditionally have
world. There’s the fact that one busi- directed their marketing efforts to two
ness executive sets up a
audiences: Consumers and
new LinkedIn account
real estate professionals.
every second. And how
This marketing is designed
about the two billion
to build awareness of who
times that people log in to
you are and what you offer
watch YouTube videos
so that when consumers
every day?
are ready for a mortgage,
Given these astronomiyour name comes to mind.
cal levels of popularity, it’s
A range of advertising,
only natural that mortgage
marketing and public relaprofessionals would be
tions messages are used to
interested in ways to leverreach both groups.
age social media in their
Traditional
media
“Consider that a
marketing. They underallows you to reach a mass
stand that tapping into the
audience with your mesrecent survey found
popularity of user-generatsage, but it also is limited
that 78 percent of
ed content can help them
because it is strictly oneconsumers trust the
establish and maintain
way messaging. And any
peer recommendarelationships with current
mass media message, no
tions they see on
and potential customers.
matter how targeted, will
social media sites.
So they get on LinkedIn,
end up going to a large
set up a Facebook page, That’s more than five number of consumers who
times as many as
and maybe even Tweet a
are either not ready or not
few times on Twitter. The
those who say they
interested in receiving it.
question is … what hap- trust what they see in
In contrast, social media
pens next?
enables lets you engage in
an advertisement.”
That depends on you.
two-way conversations with
Anyone can set up an
consumers who are already
account, but to utilize social media interested in the mortgage products and
effectively, you need to grasp the ways customer service that you offer. Posting
that it is changing marketing right information on Facebook, a personal blog,

Web: www.appraisalsanywhere.com

or on YouTube allows you to position yourself as a friendly, knowledgeable expert
who can provide valuable information to
interested consumers. It also invites those
consumers into a conversation where they
can ask you questions, contribute ideas or
testimonials, offer praise or criticism, and
share the information with their friends.
How important is that? Consider that
a recent survey found that 78 percent of
consumers trust the peer recommendations they see on social media sites.
That’s more than five times as many as
those who say they trust what they see
in an advertisement.
As the numbers cited at the beginning of this article reflect, consumers
are turning to social media with more
and more frequency. Internet users
who participated in another recent
study said that on average, they are
logging into social networking sites
twice every day. (Parents of teenagers
and young adults will doubtless find
that number laughably low.)
The bottom line is social networking
is a convenient and cost-effective way
to get people interested in you, talking
about what you do, and spreading the
word to others.

Facebook also lets you build relationships with potential customers
and increase brand recognition or
sales through targeted advertising. On
Facebook, you can segment your
audience in any number of ways: By
age, gender, location, language, hobbies and interests, and more. Having
so many options allows you to test
your target list along with the advertising offer and the creativity of the
image and text. As with YouTube, you
can set the ads’ parameters so that it
specifically targets consumers and
real estate agents living in your city or
region.
Facebook offers two payment
options to advertisers: Cost per click
and cost per thousand impressions. If
you are interested in simply raising
brand awareness, then cost per thousand impressions will be a better value.
If the purpose of your ad is strictly to
generate direct responses and drive
immediate business, then cost per click
is the best option. When clicked, the
hyperlinked ad can direct a consumer
to a Facebook page or to a website
landing page.

Nurture relationships
Target your message
You might choose to start by writing regular blog or Facebook updates that
include tips for consumers or post a
series of educational videos on YouTube.
These videos could spotlight industry
trends like changing credit score requirements, loan guidelines and documentation requirements. Address common customer questions like what can affect their
credit report, where interest rates are
heading or when is the right time to refinance. You also can offer people a
glimpse into a slice of your day, such as
when a question came up about an
appraisal, or how you responded to a
potentially deal-breaking situation in a
way that made everyone a winner.
Don’t be afraid to be specific—it
shows the public that you’re in the
know (of course, while being mindful
of the confidentiality of your customers). Consumers who read these
messages or view the videos can then
follow up with you with their own particular questions. They’ll start to view
you as a trusted authority they can turn
to with confidence.
Another benefit of social media is
that it allows you to categorize your
postings for greater relevance. For
example, YouTube allows you to tag
your videos so that viewers can easily
search for what they’re looking for. That
means you can target potential customers by location as well as subject
matter, attracting those consumers who
are most likely to do business with you.

Speaking of company Web sites, yours
should engage consumers and encourage them to make use of your services.
As with other vehicles like Facebook
and blogs, this means inviting them
into a conversation where they can ask
questions and get answers on mortgage-related topics. Continue to nurture relationships by asking past customers, particularly repeat customers
and those who have provided referrals,
to write a brief testimonial about the
high quality of service they received
from you. Give testimonials a prominent place on your Web site, include a
“Reviews” tab on your Facebook page,
and ask for a recommendation on
LinkedIn.
Constantly be looking for ways to
connect with other professionals and
establish profitable partnerships. There
are many options for staying proactive,
like sending a Tweet congratulating a
real estate broker on a recently closed
deal or linking to an agent’s new
YouTube posting. Ask them to do the
same for you.
While you always want to be professional in your presentation and in
the quality of information you provide, remember that these new media
represent a seismic shift in our
approach to marketing. Steer clear of
hard sells, industry jargon and business-speak. Instead, use a more
relaxed tone that focuses on honest
answers to real questions. Let consumers know you are ready and will-

ing to help. They are more likely to
take you up on that offer if they’re not
leery of getting an aggressive sales
pitch when they contact you.
Experienced public relations and
marketing professionals can help
you with all of these efforts. They
understand social media vehicles
and know cost effective ways to maximize your investment for the greatest impact. They also can help you
develop a strategy that uses social
media to complement your traditional advertising and public relations campaigns.

Social media will never be your one
and only marketing vehicle—it was
never intended to be used that way.
But it can be an important part of a
successful overall strategy to build and
foster relationships with your customers—past, present, and future.
John Seroka is vice president of Seroka, a
full-service branding, advertising, marketing and public relations firm. He may
be
reached
by
e-mail
at
john@seroka.com, call (866) 379-0400,
online at linkedin.com/in/johnseroka,
twitter.com/johnseroka, or on Facebook.

What Could be Better Than
Zero-Cost Marketing?
By Adam P. Smith

basics and use that “antiquated” telephone you are way ahead. Whether you
make one call a day or a million calls a
day, the cost is exactly the same. Schedule
time for calls and believe that many of
them you may not want to make. Sooner
or later, they do pay off. Call in the morning when people are still in a good mood
and your time is more productive. Return
every single call—you never know what’s
waiting behind that message and you
never want to be known as the person
who doesn’t return their calls. You want
people to call you back, don’t you?
Have casual conversations, for you
will make friends before you make
clients. Listen carefully and make notes
about family, occupation, recreational
interests, education and their dreams.
Nothing makes a person feel more
important and respected than knowing
someone is interested in their life.
Pay it forward by connecting your contacts to each other. You’ll be a hero. Be able
to apologize if you’ve been so busy you’ve
neglected someone and let them know
why. Give no excuses … just explain. Don’t
be afraid to ask for help, either. It’s alright
to ask if they know anyone who needs your
expertise. Above all else, listen carefully
and completely and take thorough notes.
It’s hard work. But, it works. You have
no added expense: you are already meeting people and networking; you already
have a CRM package; you already have a
phone, and you already have email and
the internet. You’ve talked to your leads
before or at least a friend or relative and
you have some background information.
So, use the tools you already have, don’t
spend any more money, and build your
repeat and referral business.
Adam P. Smith is president of The Colorado
Real Estate Finance Group Inc. He may be
reached by phone at (866) 423-0564, e-mail
adam@corefinancegroup.com or visit
www.corefinancegroup.com.

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IRS & SSA Reports

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www.qcmortgage.com
800-939-5383

DECEMBER 2010

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35

NationalMortgageProfessional.com

From experience, I can tell you that The bottom line still is that people do
building a repeat and referral business business with people they know and
can be done with virtually no cost and like.
who wouldn’t want that? Zero is cerSo, what does work? What about
tainly the right price. By using the right your contact database management?
tools, you can build a tremendous mar- Are you gathering contacts? Are you
keting or prospecting
building that database?
base with virtually no
He who has the most
additional expense except
friends wins and every singood effort. In these ecogle person you come into
nomic times, you are
contact with is a potential
almost negligent if you’re
client, advocate or referral
not using creative marsource. Your neighbor has
keting ideas.
a friend who wants to refiYou probably do your
nance. Or perhaps a past
marketing now in some
client refers a prospective
traditional
way
like
new one. Every social gaththrough flyers, postcards,
ering and networking
Internet leads, telemarketevent has tremendous
ing or even hard advertispotential. Charity events
“He who has the most
ing in print or perhaps on
are key because all attenfriends wins and
the radio. All of these
dees share a common
every single person
methods certainly have
ground or interest. Don’t
benefits that lead to higher you come into contact forget to strike up a convolume exposure, but they
with is a potential
versation with the guy sitcome at a cost … a very
ting next to you at a footclient, advocate or
real, very simple and often
ball or baseball game, or
referral source.”
a very high cost. Passive
the man sipping a beer
marketing doesn’t use your time because next to you at a bar. Unless you are living
you’re not working for it, of course, but in a cave, you have limitless potential if
you might get better exposure. Your logo you just look around.
becomes more commonly exposed and
What do you do with all of these new
familiar, and your smiling face means contacts? You only need a customer relavisual recognition. Your phone starts ring- tionship management (CRM) software
ing and your e-mail inbox fills and that’s package that controls the three basic
terrific.
necessities: Contacts, calendar and notes. I
However, these methods are expen- have used ACT! Gold Mine, and others, but
sive from printing costs of flyers and keep coming back to old faithful, Outlook.
mailings, to buying leads, to telemar- Again, you probably already have it and I
keting and advertising. The results may stress … at no additional cost.
yield more cold contacts, where you
Expanding your contact database just
have no background or rapport, which takes a little practice. Everyone you meet
means a much tougher sales process. or hear of should go into it. There is

always the “My friend Bob needs a mortgage” category. All of your family members, from your twin brother to your longlost great aunt Tillie, should be in your
database. Any and all former, current or
future colleagues should in your database. How many have gotten out of the
business in recent years that still need
these services? Information on old friends
can be easily located via social networking Web sites. Many sites offer lookup features for individuals and public records
are just that—public—and are available
through county assessors’ and records
Web sites. You can build a rapport before
you ever make a call. Creative thinking
counts and pays off.
The fact gathering is the easy part.
Managing your database takes some work
and you need to invest some of your time
into this task. You have to change the oil
in your car, too. Simply run through the
database alphabetically when you have
the time. Check your contacts and be sure
that no one is falling through the cracks.
Keep it current by adding and subtracting
events, always watching for the possible
future strike and removing those events
where the contacts are stagnant. Keep a
personal calendar for your contacts and
check it regularly.
The “how” is easier. The devices you
take for granted are your personal goldmines. Your mobile device contains
everything you should need and it should
be with you everywhere you go at all
times. Within that small electronic wizard, you have all your contacts, all your
calendar entries, all of your important
information regarding timelines like the
last time you spoke with a contact, and
you can make calls without your computer. That means you can wish Joe Smith a
happy birthday on a Sunday and be very
sure you do it every year.
All of that is the upside. The downside
is the work involved. It takes diligence
and a whole lot of it. If you go back to

“Who’s on your team?” is a phrase with multiple core individuals believing
coined by a good friend and fellow in you, referring you business. Your busiassociate of mine, Emily Ferguson. ness will explode. Soon, you will have
Networking and building relationships your own “private-label” sales team, and
has been written and spoken about for- all you need to do in return is refer them
ever. I hope this is telling you some- and be their salesperson. This is where it
thing, it has told me … it
gets tricky. You cannot do
is important and a big key
this with just anyone, you
to success in any business
need to build a bond, a
or endeavor. It has withrelationship, create a
held the statue of time.
team. The creation of the
In today’s fast-paced,
team will create synergy.
Internet-connected socieI have spoken in the
ty, you need a team of
past of choosing your partpeople working with you.
ners wisely. The people
I’m going to throw a new
you create bonds with will
mix in the pot … diversibecome a reflection of
ty. Diversify yourself to
you, who you are and how
success. We all know that
you operate. This is key
doing the same thing
when building a team.
“Just imagine how
repeatedly will produce
The second part of
your business would
the same results, good or
diversity, is adding a new
change with multiple
bad. Change what you are
product or service that
core individuals
doing and add diversity
complements your current
into the mixture and
believing in you,
business. This is now somevoila, you have the secret referring you business. thing you do rather than
ingredient.
refer another person. I
Your business will
You know how just
chose to become an
explode.”
that little “pinch” of salt,
enrolled agent, a practisugar or spice can make a
tioner who has technical
dish sizzle. That is what diversity will expertise in taxation, has successfully
bring to your marketing and relation- passed three levels of tax exams by the IRS
ship building skills… sizzle!
and who is empowered by the U.S.
Diversity can have multiple mean- Department of the Treasury to represent
ings. Let’s look at the first meaning I am taxpayers before all administrative levels
speaking of. Diversify your core and inner of the Internal Revenue Service for audits,
networking group. Do you meet the same collections, and appeals. Therefore giving
group of people day in and day out? Do you an-in depth knowledge of tax prepayou attend the same monthly networking ration and business entities.
breakfast meeting? Do you attend the
I choose this field because it was an
same after hours meet and greets? Step interest I had, and a great cross-over
outside of your comfort circle, and seek business. If you are preparing the tax
out and join a new group, club and returns of your clients, it is easy to sugorganization. It can even be online. gest a refinance to lower their rate, pull
Check out LinkedIn if you are not yet cash out for other investments. It also
connected. It is the Facebook for busi- flips well as my mortgage clients know
ness professionals. You might want to I already have their tax returns, I know
reach out to a different area or outlet, so all about them, so why not use me as
diversify yourself when joining new their tax professional as well?
groups. Obviously you wouldn’t want to
This is just one way, as there are a
join a group you would have no connec- multitude of other ways, marketing
tion or relevance to. But by adding new relating products such as a bi-weekly
groups and new encounters, you are mortgage products, mortgage insurbound to connect with a new person you ance, hardwood flooring, closet organhave some strong connection with. All it izing, house cleaning … the list contintakes is one core person who aligns with ues. It is what you have an interest in or
you, and believes that you are a person previous knowledge of. If you have an
of value. When this happens, that person interest and no previous knowledge,
will become your salesperson. Just imag- take a class as you can learn and grow.
ine how your business would change
As excerpt from my new book,

Stepping Stones to Success: “New ventures are becoming commonplace in
today’s marketplace. It is not uncommon to end one’s career and start or
add a new one. Open new doors. You
are smarter, stronger, less stressed, and
more experienced than you were when
you first started. Your focus is sharper.
Many Americans are planning to work
well into their 60s; some are even keeping positions during their 70s. We experience paradigm shifts in the 90s, relating to living and working longer. We
now have new career paths as we age.”
We have now looked at two uniquely
different ways of diversity, by diversifying your core networking group, and by
adding another complimentary product. The third way to diversify is really
twofold.
Diversify your marketing and sales
plans. Some synonyms for diversify are:
Changing, specialize, broadening your
horizons and branching out. I will suggest you not only adapt new marketing
ideas and campaigns, but to also diversify who you are marketing too.
Utilizing new sales and marketing
ideas, such as online marketing, the use
of e-mail drip campaigns, asking for
referrals from other associates you are
in contact with are just a few differing
marketing campaigns. I personally am
not fond of Facebook. In my opinion,
Facebook is a social gathering where
often people tell too much online. If
you like it, then use it. For work and
professional business, I like Linked In. I
am part of the language of luxury LOL, a
high-end Realtor connection and Plaxo.
This is a good way to connect to business associates and potential team members. You can see what they are doing,
what they have done. This works well with
account executives, Realtors, builders,
attorneys, insurance agents, tax professionals such as CPAs. It allows you to have
a connection, but not be too personal,
again, like Facebook. Facebook is for your
friends and for you to be yourself. I hope
I am not offending any Facebook lovers
out there, as I am sure there is someone
out there who feels differently and may
have a great success story to share with us.
This is my opinion only.
I am a true believer in a mission
statement. Create your own mission
statement and know it. The worst thing
you can do is stumble when telling
someone what you do or even ramble
on. It was Dr. Ivan Misner who once
said, “Practice it and practice it until it
rolls out of your mouth with ease.” Once
you have this down you can be standing
in line to purchase groceries, rent a
DVD, see a movie and in minutes (under
two) you can tell someone what you do.
Give them your business card, two to be
exact, one they can keep and one they

can give away.
As a mortgage professional you
should have a team of other professionals you work with. If not, create a
team. It is okay to have multiple teams,
for example. I have three key Realtors
that send me purchase clients. All three
are in different areas geographically.
Each Realtor has an attorney that they
choose to refer business to. I work well
and like each one very much; therefore, when I refer a client not coming
from the Realtor to a real estate attorney, I typically will choose the one
located closest to the new client, but
will often give them two names to
make a choice from. We all have different insurance reps we refer, and I have
one builder who knows how to do
203Ks and we will use him with all
three. I became friends with one
Realtor from a referral from an attorney I work with in taxation. She, in
turn, invited me to host an open house
for Realtors. I joined her at the open
house, bringing in some food never
hurts! But, that is where and how I met
the second Realtor. The second Realtor
started sending me quite a bit of business before the first one I had the open
house with did. Then, the first one with
the open house started referring clients
as well. I think there is plenty of business to go around. I, in turn, refer each
Realtor clients in their area as I get
them. So this goes back to, “Who’s on
your team?” The more people you
know, the larger your team will
become.
I hired a someone to help me with
my marketing. She sends out my thank
you cards, and congratulates homeowners on their new home, reminders
about low interest rates, and other personalized “real mail.” My husband is a
retired postal worker, and I just would
hate to see the post office go out of
business, and my clients like the fact
that I thought enough to mail them
something.
You can sign up for an e-mail marketing campaign that allows you to
design specific messages and send
them to specified targeted groups. You
can set the time and day the e-mail is to
go out, how often. This opens a whole
can of worms; however you must have
e-mail address permission and opt-in
and opt-out rights.
Diversify and multiply!
Laura Lynn Burke, EA is an author, trainer,
speaker, loan officer and enrolled agent,
“permitted to practice by the IRS.” Burke
works for Mid-Nation Mortgage Company
as a loan officer, she owns Professional Tax
Masters Inc. and Footprints International
Training Company. She may be reached by
e-mail at llynn145@aol.com.

these designations once industry-specif- the NMLS, prove successful completion of
ic standards have been met. The mort- 20 hours of pre-education, prove the pasgage industry is now at a time to allow sage of the national and state tests, mainits professionals to promote their tain their licensure through completion of
accomplishments. Not only will these continuing education courses and provide
designations instill pride in the mort- results of their background check. It is an
gage professional, it will add a conversa- all-encompassing designation that allows
By Lance Cassell
tion piece to introductions with borrow- mortgage professionals to promote their
ers, increase credibility and cultivate compliance with the recent federal mandates. CMB offers two types of designaWith the intense licensing and educa- ing; and lending standards for the non-tra- confidence in the minds of borrowers.
The
Licensed
Mortgage
Various organizations in the mortgage tions.
tion changes the mortgage industry has ditional mortgage product marketplace.
been faced with over the past two Education is one of the most valued industry have integrated designations into Professional (LMP) is for mortgage loan
years, it is time for mortgage profes- accomplishments throughout every indus- their membership programs, education originators who work for non-depository
sionals to take a closer look at how try in our country. Patients, customers, stu- programs and internal corporate advance- lenders, mortgage bankers and brokers.
these changes can positively impact dents, clients and borrowers alike strive to ment programs. These designations prove The Registered Mortgage Professional
valuable for segmented (RMP) is for mortgage loan originators
their relationships with current and work with and select the
accomplishments through- who are employed by a depository instipotential borrowers.
most educated counterout various careers in the tution regulated by a federal banking
In 2008, the Secure and Fair parts to help them through
mortgage industry, but agency, a subsidiary which is owned and
Enforcement for Mortgage Licensing Act every transaction they purnone are comprehensive. controlled by a depository institution
(SAFE Act) embedded new licensing sue in a lifetime. Licensed
None speak to the mean- and regulated by a federal banking
requirements and considerations into mortgage professionals are
ingfulness of the financial agency, or an institution regulated by
our professional culture. Previously now more educated and
and time-intensive invest- the Farm Credit Administration.
state-mandated, these licensing stan- more prepared to serve
It is essential to build strong relationment of meeting the new
dards are now set and overseen by fed- their borrowers so promote
federal mortgage licensing ships quickly and remember to contineral entities through the Nationwide that fact.
ue to stay “in front” of your clients at all
standards.
Mortgage Licensing System (NMLS).
Licensed mortgage loan
All industry designation times. Clients should know that you
Requirements include registering on originators have also passed
programs allow for mort- know more about their mortgage than
the NMLS, completing background a national and state test (at
checks, passing national and state tests, least one). With national “It is essential to build gage professionals to estab- they do. They want a reputable, trained
lish relationships and build professional, who invests in themselves
and completing pre-education and con- average pass rates for these
strong relationships
upon the initial request or and their craft. Designations offer an
tinuing education courses approved by tests hovering around the
quickly and rememthe NMLS.
70 percent mark, passing ber to continue to stay service. There are, and have opportunity to stand apart from the
been, a few successful mort- crowd. Use them on business cards, Web
The SAFE Act stems from commend- these tests is a notable feat.
‘in front’ of your
gage designations, such as sites and marketing materials and
able efforts to elevate the mortgage Not only have the licensed
clients
at
all
times.
the Certified Residential explain their significance to potential
industry from its disastrous downfall, individuals studied the releClients
should
know
Mortgage Specialist (CRMS) borrowers and colleagues. As the mortincrease borrower confidence and help vant course topics, they
that you know more
and Certified Mortgage gage profession takes the turn to a more
restore the financial markets. It’s now have proved the proper
Consultant (CMC) from the respected, credible and accountable
time for the mortgage professionals applicability of the content about their mortgage
National Association of industry, you should take advantage of
who have complied with these require- in a testing environment.
than they do.”
Mortgage Brokers (NAMB), the accomplishments already achieved
ments to sharpen their perspective on
Passing background
not only what these mandates do for checks is another important aspect of as well as the Certified Mortgage Banker and place them strategically in your
the industry and the economy, but the new licensing requirements that (CMB) with the Mortgage Bankers marketing arsenal.
what these mandates do for them.
has many advantages in the eyes of a Association (MBA). The Consumer Mortgage
Mortgage professionals across the borrower. After being inundated with Bureau (CMB) takes a comprehensive Lance Cassell is the managing director of
country are constantly faced with the prime-time news stories about approach to its designations. Designations the Consumer Mortgage Bureau (CMB)
challenge of finding new ways to build unscrupulous financial services profes- are only offered to mortgage professionals and vice president of TrainingPro. For
business and build relationships with sionals, borrowers are skittish and who have a unique identifier with the more information, call (410) 845-3640 or
new borrowers. Referrals, direct mail, skeptical of who supports them in these NMLS, have been approved and listed on visit www.consumermortgagebureau.org.
advertisements and online promotion financial transactions that are, oftenhave been staples in marketing strate- times, the most important transactions
ATTENTION AGENTS, INVESTORS & DEVELOPERS!!!
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Building Borrower Relationships
Through Industry Designations

S?

NEVADA MORTGAGE PROFESSIONAL MAGAZINE

HA

NationalMortgageProfessional.com

tired of non-performi
u
o
y
Are RD MONEY LENDER ng

37

DECEMBER 2010

new to market

continued from page 31

and effort by never having to leave the
familiar Mortgage Builder environment
and in essence, already know how to
use the new leading-edge capabilities.
Mortgage Builder was among the first
LOS systems to provide basic electronic
document management functionality,
but the new platform integrates the
most advanced digital image and document handling automation available
anywhere, according to Keven Smith,
Mortgage Builder’s chief executive officer and president.

Incoming documents are recognized
and classified without requiring separator sheets or bar codes, a great time
saver all by itself. And they are immediately ‘teed up’ for action in the right
person’s queue. It’s a quantum leap in
electronic document management.”
With investors increasingly requiring
electronic loan delivery in specific
stacking orders, electronic document
management is rapidly becoming a
must-have for lenders, many of whom
are currently using costly third party
services to deliver electronic files.
Paper, famously expensive and easy to
misplace, becomes a thing of the past
and is replaced with greater security
and vastly reduced costs.

Call FURST Conferencing
solutions for Mortgage Companies

CallFURST Audio Conferencing enables your mortgage company to communicate
immediately. We have a versatile suite of products that can support meetings of any size. We
offer Reservationless Audio Conferencing, Operator Assisted and Event conferencing all with
24 x 7 x 365 live help available.

38

How mortgage companies are using CallFURST Audio Conferencing
I Branch manager meetings
I Sales training and coaching
I Addressing problems with active loans in the pipeline

DECEMBER 2010

NEVADA MORTGAGE PROFESSIONAL MAGAZINE

NationalMortgageProfessional.com

CallFURST Web Conferencing can be used to conduct live meetings, perform training,
provide remote help or give presentations via the Internet. In a web conference, each
participant sits at his or her own computer and is connected to other participants via the
internet. CallFURST live help is available 24 x 7 x 365.
How mortgage companies are using CallFURST Web Conferencing
I Borrower presentations
I First time homebuyer webinars
I Software and systems training for employees
We offer:

CallFURST Video Conferencing supports features such as Video Reservations, video
streaming and the latest technology allowing you to connect with end users regardless of
their platform or technology. Video conferencing is key to keeping business connected as
travel budgets tighten and the time we have to get things done is ever-decreasing. Using
Video Conferencing, you can be sure you have access to more personal attention and
training through our team of video experts, the latest in product innovation and proven
service and reliability to ensure your message is successfully communicated.
How mortgage companies are using CallFURST Video Conferencing
I Presentations to large groups
Lowest Pric
I Educational programs for branch ofﬁces
e Guarente
I Software and systems training for employees
e
If we can't m
eet or beat y
conferencin
our
g servicing
For more details on how CallFURST Conferencing
p
ri
c
ing, I will
give you a $
10 Starbuck
s gift card.
helps to improve your company's communications,

“The office supply vendors aren’t
going to be happy about this,” Smith
said. “Every digital loan means a ream
of paper saved and represents a file
that isn’t going to be repeatedly
copied, moved around the office and
ultimately stored in a box somewhere.
With millions of loans going digital
each year, entire forests, landfills,
watersheds and energy resources will
benefit.”
For more information, visit www.mortgagebuilder.com.

Wolters Kluwer launches
new OneFile Web-based
solution
Wolters Kluwer
Financial Services
has announced
the launch of its Web-based OneFile mortgage processing solution. OneFile allows
lenders to replace the cumbersome
paper-based origination process, helping
them improve productivity, lower costs,
grow their portfolios and improve borrowers’ customer experience. A survey
of more than 600 lenders in April 2010
by Wolters Kluwer found 76 percent
were still relying on an inefficient
paper-based method to process mortgages. The top reasons lenders had not
implemented an electronic solution
were security of borrower data, high
implementation costs and the potential impact to lending workflow.
Wolters Kluwer Financial Services’
OneFile solution helps lenders overcome all of these obstacles.
Built in conjunction with mortgage
lenders, OneFile offers a centralized
source for loan documents. The solution allows lenders to create a single
electronic loan file for each borrower,
providing everyone involved in the
origination process, including third
parties, with simultaneous access to
the file and documents wherever and
whenever they need it. It also integrates to Wolters Kluwer Financial
Services’ Secure Document Exchange
(SDX) solution to help lenders securely
and electronically deliver disclosures to
borrowers. All of this helps lenders
process and underwrite loans more
quickly, eliminate printing and mailing
costs, and respond more rapidly to borrower questions.
“In today’s volatile marketplace,
mortgage lenders are seeking to retain
a competitive advantage by reducing
cost and making the origination process
faster and easier for their borrower,”
said Jason Marx, vice president and general manager, mortgage, Wolters
Kluwer Financial Services. “OneFile
allows them to do all of this with flexible workflows while maintaining compliance with an increasingly-complex
set of regulatory requirements.”
OneFile is a transactional content
management system that has been
designed for mortgage origination. It
offers pre-built mortgage file workflow,
embedded document capture functions,
and document review features that help
continued on page 40

Fix & Flip Lending
Fix & Flip Lending

• 70% Max LTV
• Residential & Commercial
• 1 to 5 year Term

NEW PROGRAM
• 100% of Purchase Price
• Residential Only
• 90-180 Days

You Need:
1. A Real Beneﬁt for the Client
2. Capacity To Support Loan
3. Accurate Value
4. A Realistic Exit Strategy

Veros adds Appraiser Panel
Management capability
with module for its
VeroSELECT platform
Veros, a provider
of collateral valuation technology, enterprise risk management and predictive analytics, has launched Appraiser
Panel Management, a functional component within its VeroSELECT platform giving lenders the flexibility to include
appraisers from their own approved
panels while remaining compliant with

Consumers want to work with people
Consumers
want to work people
they can trust
and
believe.
they can trust and believe.
starts by setting
higher
Trust
starts byTrust
setting
higher
BROKER
standards for the mortgage industry.
standards for the mortgage industry.
ER

elements in a real-time, fully auditable
reporting module. It also maintains all
data points from the valuation source,
including a first-generation PDF of the
entire report.
With the Appraiser Panel Management
functionality, lenders can use VeroSELECT
to electronically invite appraisers to join
their network and directly send appraisal
orders. This gives lenders the advantage
of guaranteeing local proficiency, while
staying compliant with appraisal regulations. By being able to create and maintain their panels of approved appraisers
as part of their ordering list, lenders can
reduce their dependence on single vendors, keep response times high and
reduce costs over the long term.
For
more
information,
visit
www.veros.com.

Field Asset Services
releases REO and short
sale management tool
Field Asset Services
(FAS), a provider of
field services to the
real estate-owned
(REO) industry, has announced the availability of FAS Direct Services, a new service solution for larger real estate firms, based on
FASâ&#x20AC;&#x2122;s revolutionary Collateral Command
concept. An integrated suite of services, FAS
Direct Services eliminates the hassles of
property management for local real
estate agents and brokers.
â&#x20AC;&#x153;FAS understands that the goal of real
estate agents is to move properties fast
and not be held back by the time-consuming tasks associated with property
management,â&#x20AC;? said Dale McPherson,
president and chief executive officer of
Field Asset Services. â&#x20AC;&#x153;FAS Direct Services
was created to offload the burdens of
property management by providing real
estate agents with a dependable solution that delivers the services they need,
when they need them and in a recurring
business model. By leveraging our more
than 15 years of experience providing
property management services to the
lender community, weâ&#x20AC;&#x2122;ve been able to
build a robust solution for the agent
community that eliminates property
management challenges and enables
them to focus on their job of selling
and marketing properties.â&#x20AC;?
FAS Direct Services is an integrated
suite of services created to streamline
the management of REO and foreclosed properties for real estate agents.
Centrally managed by FAStrack, FASâ&#x20AC;&#x2122;s
state-of-the-art workflow management
system, FAS Direct Services enables FAS
to deliver agents consistent and high
quality service and predictable pricing
with a three-day turn around on initial
services.
Through FAS Direct Services, FAS is
able to efficiently oversee all aspects of
property management activities from
utilities to compliance and proposal
while providing real estate agents with
an easy way to order, inspect and
review preservation and recurring services. In addition, through FAStrack, FAS
continued on page 42

• Multiple National Lenders
• RESPA/Compliance Training

• Weekly Production Training
• Multiple Warehouse Lines

“My experience with Frost Mortgage has been “as
advertised.” Our recent MasterMind Meeting in Albuquerque was one of my best learning experiences
I’ve had since entering the mortgage business.”
- Loren Winzeler - Santa Rosa, CA

“I made a bad move to a small net branch company
with terrible service. The Frost team jumped in, got
my loans processed, approved and closed on time.
Great service and great pricing.”
- Todd Crampton - Farmington, NM

“We gained multiple lenders, great pricing, timely
underwriting and closing. They also answer the
phone and call us back. Works great for me.”
- Kevin Hodge, Abingdon MD

“Greg promised to put an Underwriter in my ofﬁce
when I hit my numbers. I did, he did, and we couldn’t be happier. This local decision making ability gives
my team a decisive advantage over our competition.”
- Robert Shaffer, Lancaster, CA

"We were plugging along at $1.5M a month for years.
Greg offered to help me recruit and has joined me in
Nashville for several days in the the last few months.
Our branch production is up 300%."
- Shane Atwell, Nashville, TN

“I joined Frost Mortgage and immediately saw my
revenue get back to what it used to be. I now have
the tools I need to be successful in today’s market
place.”
- Bill Morris, Lancaster OH

A PRMI Company

If you would like to learn more about our BranchPartner business model, please inquire:

new to market
managing in the
brave new world
of mortgage finance
attend the
28th Annual Regional Conference of
Mortgage Bankers Associations
March 15 - 17, 2011
Trump Taj Mahal Casino Resort, Atlantic City, NJ
For The First Time: The Residential Program Will Include A
Commercial Track So That Attendees Will Have A Choice As
To Which Sessions To Attend. Both Cocktail Receptions And
The Exhibit Hall Will Be For Both Residential And Commercial
Programs.

Wednesday
General Session Topics
The Future of the Securitization Market, Risk Retention,
TBA Market, Reforming the GSE’s, Government
Guarantees & More
MBA’s Report on Current Legislative/Regulatory Issues
Banks in the Mortgage Market
How to Use Social Networking:
Facebook, Twitter, LO Websites, Blogs

can enable QA inspections and online
tracking.
For
more
information,
visit
www.fieldassets.com.

LPS Applied Analytics
announces Realtor
Valuation Model
Lender Processing
Services Inc. (LPS), a
provider of integrated technology and
services to the mortgage and real estate
industries, has announced the release
of the Realtor Valuation Model (RVM)
from its LPS Applied Analytics division.
The LPS RVM is the only automated valuation model (AVM) with duly licensed
multiple listing services (MLS) data
drawn from the Realtors Property
Resource (RPR).
The RPR is a parcel-centric information database launched by the National
Association of Realtors (NAR), covering
all of the more than 147 million property parcels in the country as a resource
for NAR members. By leveraging this
information for the development of the
RVM, LPS Applied Analytics expands the
reach of traditional automated valuation, bringing listing and pending sale
data into the equation.
“With the introduction of the LPS
RVM, users now have housing supply
information at their fingertips,” said
Robert Walker, managing director, valuations, for LPS Applied Analytics. “By
factoring listings and pending sales in
the report, it becomes easier to better
understand the external factors impacting the value of a specific property.”
In testing, the LPS RVM has proven
extraordinarily accurate when compared with other comparative AVMs. In
a sampling of Maricopa County, Ariz.
(Phoenix) properties, for example, the
LPS RVM correctly predicted the selling
price of a property 72 percent of the
time. According to Walker, this high
accuracy is the direct result of the addition of MLS data fully licensed by RPR.
For
more
information,
visit
www.lpsvcs.com.

Advantage Systems adds
Clearing House feature to
its accounting system

Advantage Systems, a provider of
accounting and contract management
tools for the mortgage and real estate
industries, has announced the addition
of an Automated Clearing House (ACH)
processing function to its Accounting
for Mortgage Bankers (AMB) system.
AMB is an accounting system designed
for mortgage bankers to provide loanlevel detail of accounting transactions.
The ACH application was created in
response to the growing use of electronic payments. With the feature,
lenders are able to cut costs by elimi-

nating check processing and postage
fees. The payment file created by the
system is generated in the National
Automated Clearing House Association
(NACHA) format. As such, the file can be
read by any bank supporting the NACHA
format. Dallas, Texas-based PrimeLending,
a PlainsCapital Company, is Advantage
Systems’ first customer leveraging the
application.
“Lenders are seeking ways to
decrease expenses in all areas of business, even in how they pay bills,” said
Brian Lynch, president of Advantage
Systems. “In speaking with customers,
we found that some were spending significant amounts mailing thousands of
checks each month. With the ACH
application, they can easily send electronic payments and maintain security
for all parties involved. We build each
addition to AMB with our customers in
mind, taking steps to increase their
business efficiency and making
accounting, which affects all portions
of the company, as simple as possible.”
The AMB system provides general
ledger, accounts payable and report
writing capabilities. A Web-based
branch reporting module is also available for branch managers along with a
module to calculate commissions,
bonuses and overrides.
For more information, visit www.mortgageaccounting.com.

NCS launches new
employment verification
solution
NCS, a provider of income,
identity and credit intelligence, has announced the
launch of VOE CONFIRM,
an advanced employment verification solution that enables lenders to better confirm
potential borrowers’ ability to repay, helping to ensure overall loan quality. With VOE
CONFIRM, lenders submit their employment verification requests through
NCS’ secure Web site. Then, NCS conducts the necessary research and its
staff of professionals makes personal
phone calls to verify the employment
information given by the potential borrower. Within 24-48 hours, the lender
receives a VOE CONFIRM report that
verifies whether or not the employment information provided is accurate.
In addition to verifying the accuracy
of the employment information, the
VOE CONFIRM report also outlines the
details of the steps involved in the
accuracy determination process for
audit purposes. The information in the
report is delivered in an easy-tounderstand format that enables
lenders to expedite the origination
process. Further, the VOE CONFIRM
report follows the guidelines established by Fannie Mae and Freddie Mac.
“While employment verifications are
not new to the mortgage industry, the
demand for timely and accurate

employment verification that delivers
the next level of quality assurance is
very strong,” said Curt Knuth, executive
vice president of NCS. “Whether trying
to remain in compliance with the Loan
Quality Initiative or identify potential
fraud, lenders must be able to confirm
the information provided on borrower
applications. VOE CONFIRM supports
that need and complements NCS’
extensive line of well-established verifications solutions, including those that
confirm income, identity and credit.”
For
more
information,
visit
www.ncstrv.com.

ISGN announces its
Quality Assurance and
Review service offering
for servicers

continued on page 48

You've decided to look
at Branching Opportunities!
With all the NEW PLAYERS entering the market, it's not an easy decision.
There are several options, but are they EXPERIENCED AT BRANCHING?

The Consumer Mortgage
Bureau has announced
that they have developed
two new designation programs to define the mortgage industry in the wake of the SAFE
Mortgage Licensing Act of 2008: The
Registered Mortgage Professional (RMP)

means that the individual is a certified
member of the Consumer Mortgage
Bureau and has met all of the organizations qualifications and agrees to
adhere by their strict Code of Ethics. The
RMP is the mark of those who have met
the following criteria: registered in the
National Mortgage Licensing System
with a unique identifier (starting
January 2011); fingerprinted; background check; working for a depository
lender, bank or credit union; education
(internal); profile accessible at
www.consumermortgagebureau.org.
The Licensed Mortgage Professional
designation was developed for mort-

NEVADA MORTGAGE PROFESSIONAL MAGAZINE

Consumer Mortgage
Bureau announces two new
professional designation
programs

mum national standards for testing
and education. The Consumer
Mortgage Bureau’s new designations
give added credibility to the professionals, while giving consumers additional security, comfort and general
“peace of mind.”
The Registered Mortgage Professional
designation is used by mortgage loan
originators who are an employee of a
depository institution (including credit
union) regulated by a federal banking
agency (OCC, OTS, FDIC, FRB, NCUA), a
subsidiary-owned and controlled by a
depository institution and regulated by
a federal banking agency, or an institution regulated by the Farm Credit
Administration. The RMP designation

NationalMortgageProfessional.com

ISGN, a provider of endto-end technology solutions and services to the
U.S. mortgage industry, has announced
its Quality Assurance and Review services for servicers, mortgage insurance
(MI) companies and investors. This
product line, which covers all activities
ranging from loan audits, underwriting
review, loan modification review to
foreclosure documentation, helps servicers prevent buy-backs, reduce future
legal expense and ensure integrity
throughout their processes.
“This foreclosure crisis will have a
huge impact on the housing industry,”
said Chetan Patel, executive vice president for ISGN. “If there is even a limited foreclosure moratorium and loan
ownership is being challenged, the REO
market is going to see a major slowdown. Naturally, buyers and investors
will be hesitant to purchase a property
whose title is in question. The ripple
effect and implications are massive.”
ISGN’s Quality Assurance and Review
services are standardized for consistency of process, and are carried out by
trained and experienced professionals.
ISGN has been providing loan origination and due diligence services for
more than 10 years and clearly understands both GSE requirements and
appropriate underwriting rigor needed
to create a conforming loan. Services
include file-level and workflow audits
in addition to predictive analytics and
portfolio surveillance. Servicers can
choose to implement the service or
services that best fit their objectives.
The Quality Assurance and Review services can be implemented as an on or
off-site outsourced solution.
For
more
information,
visit
www.isgn.com.

and
the
Licensed
Mortgage
Professional (LMP). On July 30, 2008,
President Barack Obama signed the
Housing and Economic Recovery Act of
2008 (HR 3221) into law to stabilize the
housing market and help alleviate the
financial crisis. Title V of the Act, the
Secure and Fair Enforcement (SAFE) for
Mortgage Licensing Act of 2008, is specific to the registration and education
of mortgage loan originators across the
country to aid with consumer protection and fraud reduction.
The SAFE Mortgage Licensing Act
mandates that all loan originators be
identified through the Nationwide
Mortgage Licensing System and Registry
(NMLS) and establishes uniform mini-

Appraisal Management
Company

Coester Appraisal Group
7650 Standish Place, Suite 107 • Rockville, MD 20855
www.coesterappraisals.com
(888) 485-1999 Ext. 2
We are a premier National Appraisal Company since 1970.
We have a complete product line for your entire organization.
We guarantee HVCC and FHA regulatory compliance.
Let our experience work for you. The way valuations should be.

Find out what Guaranteed can do for you.
Branch Program for Professionals. It's what we do.

Increase your Loans,Get the Edge & Generate More Referrals!
Offer your clients a 5 Day 4 Night Cruise certificate for Two to Mexico,
the Bahamas or the Western Caribbean (up to a $1798.00 value) only
when they close a loan with you. Only $159.00 per certificate!!

Compliance Consultants
StreetLinks National Appraisal Services
(800) 778-4788
www.StreetLinks.com
sales@streetlinks.com
There’s only one avenue to guaranteed appraisal performance!
With a commitment to doing business the RIGHT way, StreetLinks
is bringing real value as a PARTNER, not a vendor.

44

• We attract and retain the best appraisers – Our appraisers set
their own fees and our peer-to-peer approach attracts appraisers
that simply won’t work for other AMCs
• IQ Select™ proprietary order assignment methodology assigns
based on proximity, service and quality – not lowest fee!
• 100% Manual Quality Control – every report is manually
pre-underwritten by a USPAP certified appraisal underwriter
• Certified compliance with appraiser independence requirements
AND INTRODUCING SCORe™ - a revolutionary approach to
appraisal validation. Credible 2nd opinions on comp selection
from licensed, local appraisers. Stop Guessing. Start Knowing!

Advanced Data is a leading national provider of data services,
streamlining income and employment verification with proprietary
software. Clients can submit 4506-T directly through Encompass360.
Also ask about our AVM and flood services!

DocVelocity is an end-to-end paperless solution designed to simplify the loan origination experience. Imagine having all your documents in the loan process as electronic files, all online, from preapproval to closing. DocVelocity provides: Fast and easy loan
delivery to any lender … Automatic doc sorting, naming and filing
… Real-time online document sharing for anyone you choose …
Friendly and intuitive user interface … No start-up fees, and free
training and support. DocVelocity addresses important compliance issues while giving your office the competitive advantage of
being paperless. It streamlines all aspects of the mortgage
process and most important, it does so in one easy-to-use and
inexpensive package. Its newest version, DocVelocity 2.5, adds
over 50 new features and enhancements to make the best paperless office even better. DocVelocity is the flagship product of
Paperless Office Solutions, Inc., a wholly owned subsidiary of
Flagstar Bancorp. Visit www.docvelocity.com to find out more.

North Lake College - Specialized Education In Mortgage Banking.
Earn An Associates Degree in Mortgage Banking From the First Fully
Accredited Mortgage Banking Degree Program in the U.S. For
Information About Our 30 Year Program email:kbaker1@dcccd.edu.

• Specializing in Official Snap Packs for Greater Open Rates
• Envelope Mailers, Business Reply, Postcards and Much More
• Targeted Mortgage Lists with Many Selects
• Complete Design, Printing and Mailing Services

Sign up with the
Premier Jumbo Lender
www.ingloans.com
877.464.0555, option 2
Move your Jumbos to a better neighborhood. ING Mortgage is
your home for Portfolio loans up to $3,000,000. We offer aggressive
pricing and simple guidelines in all 50 states.
Big Loans. Low Rates. Great Value.

Leads
AAA Refi Leads.....AAA Refi Leads.....AAA Refi Leads
Learn how I went from failure to success by mailing cheap refi
letters from home, closed 71 loans & made $248,954.62 last yr.
I’ll show you exactly how I did it. Go to: www.Refi-Leads.NET

46

Internet’s Leading Consumer Mortgage Marketplace
Attracting over 7 million unique
consumers every month
www.Bankrate.com • 561-630-1257
Reach affluent and creditworthy consumers who are in-market and
ready to transact. Bankrate is a consumer direct Web site, NOT a
lead aggregator. Qualified leads for every sized budget, and pay
only for performance. No set up fees! No contracts! No risk!

www.mortgageloan.com • 877-390-4750
MortgageLoan.com is the largest online directory
for mortgage professionals and a favorite of
consumers shopping for mortgage loans.
Our network attract over one million visitors per month. Our paid
lead program as well as our free lender directory will help you connect with targeted new consumer traffic from with high-intent consumers searching online for the right mortgage lender.

Intracoastal Abstract Co. Inc.................516-358-0505
Privately owned & operated full service title insurance agency
in NY, NJ and FL, with affiliates throughout the US & Canada.
Escrow Agent in Florida.
www.intracoastalabstract.com.

Wholesale/Correspondent
BankFinancial ..........................................800-894-6900
We have money to lend for apartments, $250M to $2MM, up to
75% LTV. We offer competitive rates, fees & terms. We’re committed to helping you and your clients close the deal. Call us.

Loan Incentives

If your ad was here, you would be seen by 191,181 Mortgage
Professionals looking for resources to help them in their business.
Cruise4Two-Loan Incentives
1-866-541-8077
www.Cruise4Two.com
Increase your Loans,Get the Edge & Generate More Referrals!
Offer your clients a 5 Day 4 Night Cruise certificate for Two to Mexico,
the Bahamas or the Western Caribbean (up to a $1798.00 value) only
when they close a loan with you. Only $159.00 per certificate!!

The Resource Registry is a directory of lenders (wholesaler or retail that
are recruiting), affiliated services and resources that is seen
by more than 191,181 active Professionals.

Call 888-409-9770 ext 4. to register your company.

Wholesale/Residential

Wholesale/Residential

Wholesale Reverse Mortgages

NATIONWIDE Equities
Flagstar Wholesale Lending
www.wholesale.flagstar.com
(866) 945-9872
WLSC@flagstar.com
Flagstar Wholesale Lending, a division of Flagstar Bank, is one of
the nation’s largest wholesale and correspondent mortgage
lenders, providing the technology, products, service and support
that independent mortgage brokers, correspondents, and bankers
need in today’s mortgage arena. In the ever-changing environment of mortgage banking, Flagstar takes pride in accommodating the specific needs of each customer. At Flagstar, we understand that you need every available advantage to stay ahead of
the competition. This is why we provide multiple technology
options to meet your needs to register, lock, underwrite, close,
fund and deliver your loans. Our wholesale website
(wholesale.flagstar.com) and the loan processing tool Loantrac
provides our customers with the functionality that make it easier
and faster to close loans, saving you time and money! Visit wholesale.flagstar.com to learn more.

Call 888-409-9770 ext 4.
to register your company.

Terrace Mortgage
4010 W. Boyscout Blvd., Suite 550
Tampa, FL 33607
866-934-4631 • www.terracemortgage.com
We offer competitive pricing and fast turn-times for FHA, VA,
Conventional, and USDA programs without having a retail presence in the industry. We are a wholesale lender with 22 years of
experience and believe in exceptional service.

Lykken on Lending is a weekly 60-minute show hosted by mortgage
veteran of 37 yrs, David Lykken, along with special guest Alice Alvey &
Joe Farr as well as featured special guests. Each week we provide our
listeners with up-to-the-minute information of what is happening in
mortgage and housing industry.

47

new to market

continued from page 43

gage loan originators who work for
non-depository lenders, mortgage
bankers and brokers. Just like the RMP,
the LMP designation means that the
individual is a certified member of the
Consumer Mortgage Bureau and has
met all of the organizations qualifications and agrees to adhere by their
strict Code of Ethics. In addition, all
LMP’s are approved in the NMLS
(National Mortgage Licensing System);
possess a NMLS number (unique identifier generated by the NMLS); completed
initial pre-licensing training; completed National and State examinations;
participate in continuing education;
fingerprinted; background check; profile accessible at www.consumermortgagebureau.org.

For more information, visit www.consumermortgagebureau.org.

Your turn
National Mortgage Professional Magazine
invites you to submit any information
promoting new “niche” loan programs,
new products or any other announcement related to the introduction of a
new program, to the attention of:

New to Market column
Phone #: (516) 409-5555
E-mail: newsroom@nmpmediacorp.com
Note: Submissions sent via e-mail are
preferred. The deadline for submissions
is the 1st of the month prior to the target issue.

To submit your entry for inclusion in the National Mortgage Professional
Calendar of Events, please e-mail the details of your event, along with
contact information, to newsroom@nmpmediacorp.com.
JANUARY 2011
Thursday, January 13
Florida Association of Mortgage
Professionals Palm Beaches Chapter
2011 Annual Trade Show
“Mortgage Olympics: Are You in it to Win It?”
Palm Beach County Convention Center
650 Okeechobee Boulevard
West Palm Beach, Fla.
For more information, call (561) 254-5379
or e-mail fambpb@bellsouth.net.
FEBRUARY 2011
Sunday-Wednesday, February 6-9
Mortgage Bankers Association’s Commercial
Real Estate Finance/Multifamily Housing
Convention & Expo 2011
Manchester Grand Hyatt San Diego
One Market Place • San Diego, Calif.
For more information, call (800) 793-6222
or visit www.mortgagebankers.org.

Whether you’re actively searching for a new job
or not, don’t miss what could be your next
career opportunity. Post your anonymous
resume now to start building a better career
in the mortgage industry.
Search the vast number of career possibilities available in
the origination, settlement, secondary & servicing areas of
the Mortgage Business or create a personal job alert to be
notified of new jobs that match your search criteria.
Be available for your next career opportunity. Post your
resume at FindMortgageJobs.com where employers search for mortgage professionals.